Axactor (Buy, TP: NOK6.80) - Managed risk through low season
Our Q3e PTP of EUR8m, down 41% YOY, reflects higher interest rates continuing to raise funding costs, offsetting increased collections and higher ERC. Having successfully placed a new NOK2.3bn bond in August and repurchased the January 2024 maturity ACR02 bond, we believe a key equity case risk has been addressed. Although we still need to see a ramp-up of higher-yielding NPL investments, we continue to find the shares attractively valued at a 2024e P/E of ~4.5x. We 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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