Boliden (Buy, TP: SEK460.00) - Big M&A move, value story intact
We calculate that Boliden’s move to acquire Zinkgruvan and Neves Corvo will have close to 20% impact on our EBITDA24e. Still, we argue that the overall asset quality in the asset portfolio is being diluted at the same time as we expect the number of shares to increase by c8%, leading to negative EPS effect. We reiterate our BUY, but have cut our target price to SEK460 (480), reflecting a small, but negative, M&A effect.
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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