Bonava (Buy, TP: SEK80.00) - Volatile, but undervalued
Bonava’s Q1 was in line with our forecast. It announced a share buyback and trimmed its 2022 target for unit starts. It also lowered its 2026 targets due to the Russian wind-down decision, announced new country based divisions, and provided completion profiles for all units under construction through Q4 2023. Due to the large reduction in 2023 expected completions, we have cut our 2023e revenue by 24% and our 2023e EPS by 43%, but expect a bounce-back in 2024. We reiterate our BUY, but have cut our price target to SEK80 (100).Bonava AB (publ). Bonava publ AB is a Sweden-based company, which is primarily involved in real estate development industry. The Company operates as a developer of housing units to consumers and investors in Sweden, Germany, Finland, Denmark, Norway, the Russian Federation, Estonia and Latvia. In Germany, the Company's offering is targeted at consumers and investors through both single-family houses and multi-family houses. The Company operates on the basis of an own-produced construction system in Germany, which is used in all new construction, thus enabling an efficient construction process. In Estonia and Latvia, the Company's offering is primarily targeted at consumers, based on multi-family houses. In Russia, it operates solely in Saint Petersburg region with offering comprises of multi-family houses.
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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