Bilia AB (Buy, TP: SEK150.00) - Recovery likely pushed to 2025
We are cautious ahead of the Q3 report, as a likely recovery in car earnings is pushed to 2025e, while we expect service earnings to be flattish on still-restrained consumer sentiment near-term. Nevertheless, with c+40% EPS growth in 2025e on a forecast new-car market recovery next year, we remain positive on the stock. We reiterate our BUY but have cut our target price to SEK150 (160), mainly on lower estimates.Bilia is mainly engaged in the distribution and servicing of cars and transport vehicles in Sweden, Norway and Denmark. Co. has a range of services and products in the Services Business, including workshop services, spare parts and store sales. Co.'s Car Business includes sales of new and used cars and transport vehicles, customer financing and supplementary services. The Fuel Business involves sales of fuels. This includes sales of petrol, diesel, ethanol and compressed gas.
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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