Byggfakta Group (Buy, TP: SEK57.00) - We still expect a raised bid
The Q4 results showed no signs of maximising the short-term financial profile, given EBITDA margin headwinds and another acquisition. We reiterate our BUY and have raised our target price to SEK57 (55) as we see potential for a raised take-private bid as: 1) SEK46/share bid, with backing from 68.6% of the shares, is still a ~25% discount to our DCF and peers’ multiples valuations; 2) media reports on investor concerns regarding the bid price and potentially amassing 10%+ of shares needed to block the bid; and 3) we do not rule out other potential suitors. A bid of SEK57/share would leave potential value creation towards our SEK98/share value gap in a private setting.
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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