Bonava (Buy, TP: SEK110.00) - Underperformance = opportunity
Bonava’s housing sales in Sweden have recovered in 2019, in line with peers. However, unlike peers the share price has not recovered. We believe this is partially due to its accounting (IFRS-IFRIC15), which means it must much more strictly show the effects of 2017–2018 price cuts on apartments, unlike peers whose accounting smooths profits. We expect a solid Q4 result, due on 23 January (07:30 CET), on high unit deliveries in Germany, Nordics and the Baltics. We have upgraded to BUY (HOLD), with an unchanged target price of SEK110.
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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