Ready to increase its too low leverage

Over collection expected from increased legal costs. Cash EBITDA down 5% for 2024e-25e on ERC. Ready to invest more and increase its too low leverage. BUY.

B2Impact (Buy, TP: NOK10.70) - Strong collection performance

Q1 PTP increased by 3% YOY, following a long-awaited drop in financial costs, largely on improved funding margins and a lower debt base. Collection performance remained solid, with unsecured collections at 105% of management’s forecast, and a positive revaluation after “sustained overperformance”. The company reiterated its disciplined investment outlook, along with its guidance of lower run-rate financing costs, prompting us to raise our 2025–2026e EPS by 1–2%. We reiterate our BUY and have raised our target price to NOK10.7 (10.5).

Overcollection blured by high legal costs

Sweco (Buy, TP: SEK170.00) - Billing ratio set to improve

Going forward, we expect Sweco to more quickly reverse the negative billing ratio given the large-scale actions taken, and for profitability to see more support from cost-cutting, accelerated efficiency improvements and a leaner organisation. We reiterate our BUY and have increased our target price to SEK170 (137).

Equity raise, two more Q1 reports

This week, Nyfosa raised SEK1.7bn in equity, and Citycon and Olav Thon reported their Q1 results. Real estate stocks have performed well globally since the latest US CPI print. The weighted-average implied EBITDA yields on the stocks we cover are 4.32% for 2024e and 4.71% for 2025e.

Tokmanni (Buy, TP: EUR16.00) - Several hiccups

Following weaker-than-expected underlying Q1 performance, including sluggish key LFL KPIs and a higher fixed cost base, we have cut our 2024–2026e EPS by c6% on average. We reiterate our BUY but have reduced our target price to EUR16 (17).