Byggfakta Group (Buy, TP: SEK50.00) - Moving closer to a trough
Byggfakta’s Q2 results should not shift the investor debate regarding near-term scepticism related to concerns about a pullback in construction customer budgets, high gearing, and low liquidity in the stock. However, we still see an undemanding valuation at a 2023e P/E adjusted for M&A amortisation of 14x based on Byggfakta’s: 1) through-the-cycle organic growth, as Q2 marks the fifth straight quarter with weak construction markets; 2) improving net retention from lowered churn; 3) stabilising margins; and 4) strong FCF characteristics. We reiterate our BUY and SEK50 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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