Cleaner is better
Balder announced on 23 August it intends to recall all its preference shares, and issue one unsecured and one hybrid bond instead. We believe common shareholders should view preference shares as debt (a view partially supported by Moody’s and S&P), which we believe is the reason for the recall. The Q2 results were broadly in line with our forecasts, but the new financing structure has led us to raise our 2018–2019e EPS and FFO. We have upgraded our recommendation to HOLD (SELL) and raised our target price to SEK220 (SEK195).
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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