Viktor Trollsten
EUR 83.43 For Business Accounts Only

Boliden (Buy, TP: SEK270.00) - Why we like 2020 despite the miss

We reiterate our BUY but have cut our target price to SEK270 (280) as we believe the 2020 earnings outlook is still intact despite a weak 2019 year-end. Key takeaways: 1) Kevitsa is expected to reach 9.5Mtonnes by Q2, 2) updated capex guidance in Q1 could be a positive trigger, and 3) 2019 DPS disappointed, but solid cash flow still bodes well for a good dividend story in 2020, as the stock is trading at a 6% yield on our estimates. We have cut our 2020–2021e EBIT by c5%.
Boliden AB

Boliden AB produces base metals such as zinc, copper and lead for industrial customers throughout Europe. Co.'s operations are conducted within two business areas, namely Mines and Smelters. Co.'s mining operations comprise eight mines located in four areas: Aitik, the Boliden Area and Garpenberg in Sweden, and Tara in Ireland. Co.'s exploration focuses on deposits that contain zinc, copper and precious metals. Co.'s smelters comprise the Kokkola and Odda zinc smelters, the Ronnskar and Harjavalta copper smelters, and the Bergsoe lead smelter. Co.'s smelters, Ronnskar, Harjavalta, Kokkola, Odda and Bergsoe, produce pure metals, customized alloys, and by-products such as sulphuric acid.

DnB Markets
DnB Markets

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.


Viktor Trollsten

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