Axactor (Buy, TP: NOK6.80) - Addressing key funding risks
Axactor reported Q2 pre-tax profit 5% lower YOY as the higher interest rates continue to weigh on earnings through a higher cost of funding. Portfolio prices have yet to reflect higher rates, leading to the muted investment outlook. By planning to issue a new bond of NOK2bn, with support from the majority shareholder, we believe a key risk for the equity story is being addressed. We have made limited 2024–2025e EPS revisions and reiterate our BUY and NOK6.8 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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