Bonava (Buy, TP: SEK115.00) - Success could mean sharp growth
With Bonava’s Q3 results, management and the new CEO presented its new financial targets. Bonava now aims for 8,000 homes sold and a pre-tax profit of SEK2.2bn in 2026. We believe this would imply 2026e EPS of cSEK15.5, potentially more than twice the current run-rate. Unlike YTD volatility (Q1 and Q2 were beats), the Q3 result missed as 200 of the units completed in Q3 are to be delivered to clients in Q4. The company held back on the details for its roadmap to its 2026e target, thus we expect more clarity at the CMD on 14 December. We reiterate our BUY and have raised our target price to SEK115 (110) on updated forecasts.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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