Report
Viktor Trollsten
EUR 466.12 For Business Accounts Only

Boliden (Buy, TP: SEK280.00) - Smelters to the rescue

We are 5% above consensus on Q4e EBIT and 15% below on DPS for 2019e (results due on 13 February). We have cut our 2020–2021e adj. EBIT by 3% on lower metal prices and a stronger SEK, but still believe the 2020 earnings outlook looks attractive thanks to organic growth initiatives coming online and above-reserve-grade mining at key assets. We reiterate our BUY but have cut our target price to SEK280 (300).
Underlying
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.

Provider
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.

 

Analysts
Viktor Trollsten

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