B2Holding (Buy, TP: NOK24.00) - High capex in Q4
We expect B2 Holding to report seasonally strong Q4 EBIT of NOK279m (results due at 7:00 CET on 28 February), up 85% YOY as scale benefits start to materialise. We forecast a 40% increase YOY in gross collections, and a boost in reported EPS to NOK0.45 from a depreciating NOK. Q4 capex was pre-announced, at a record-high NOK1,951m. We have raised our 2018–2020 EPS by ~4%, mainly due to FX and high NPL capex, and reiterate our BUY recommendation. We have also raised our target price to NOK24 (23) as we expect group financials to improve as B2Holding continues to build scale.B2holding ASA. B2holding ASA is a Norway-based company, which is primarily focused on the financial services industry. The Company operates as a provider of debt solutions for banks and institutional vendors. The Company operates in five segments, namely: Debt Purchase, Debt Collection, Credit Information, Third Party Debt Collection, Consumer Lending. The Debt Purchase segment is involved in the purchasing debt portfolios, in particular Non-performing loans (NPLs). The Debt Collection segment provides optimal collections through amicable solutions or legal processes. The Credit Information segment offers credit information as a service through Creditreform in Latvia. The Third Party Debt Collection offers collection of debt on behalf of customers. The Consumer Lending segment provides lending services. The Company operates on Danish market through Nordic Debt Collection A/S (Nodeco), as well as owns a majority stake in Spanish entity Confirmacionde Solicitudes de Credito Verifica.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.