Boliden (Buy, TP: SEK380.00) - Mind the gap
Despite lower metal grades from key mines and modified Rönnskär smelter operations, which are set to weigh on 2024–2025e, earnings should remain healthy. For 2026–2027e, earnings should rise significantly on: 1) normalised metal grades from key mines; 2) Rönnskär being back on track; and 3) incremental profits from the Odda expansion, leading to a low P/E of c8x. Boliden’s exposure to metals offers favourable long-term price trends, and with support from our conservative SOTP valuation indicating a value of SEK480/share, we reiterate our BUY and have increased our target price to SEK380 (330).
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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