Axactor (Buy, TP: NOK50.00) - NPL collections growing steadily
Axactor reported a further improvement in NPL collections and margins in Q1, while writing-down expected remaining collections (ERC) on REOs by 2.5%, as well as guiding for later REO sales than previously. We have raised our 2020–2021e EPS by 1% to reflect the flatter collection curve and the EUR50m increase in the 2019 capex guidance. We continue to find Axactor attractively valued at a 2020e P/E of 5x, and reiterate our BUY and NOK50 target price.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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