Axactor (Buy, TP: NOK6.80) - Expecting modest investment pace
We forecast Q2 PTP of EUR11m, down 27% YOY despite 11% higher ERC, reflecting continued pressure on funding costs from a 3.7%-point YOY increase in the EURIBOR. We expect still-modest investments, as portfolio prices have yet to fully factor in the new rate environment, further affecting gross revenue growth. We still expect investments to be towards the higher end of the EUR100m–150m guidance for 2023. Nonetheless, we reiterate our BUY but have lowered our target price to NOK6.8 (7.0), while we still find a 2024e P/E of <5x attractive.
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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