Axactor (Buy, TP: NOK6.80) - Expecting solid 2023 performance
We expect a continued solid NPL collection performance to result in Q4 EBIT of EUR31m, up 9% YOY. In line with the guidance, we forecast 2023 NPL investments of EUR122m, enough to keep ERC stable going into Q4. We expect improved margins after having exited the third-party collections (3PC) segment in Sweden and Finland, offsetting lost volumes. We have raised our 2024–2025e EPS by 1–5% following the improved outlook for lower market interest rates, and reiterate our BUY and NOK6.80 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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