Bravida (Buy, TP: SEK95.00) - Sustainability as business driver
Q3 looks set to be another strong quarter supported by recent acquisitions and with the Oras legacy contracts now finalised. We forecast 10.8% sales growth YOY in Q3, with 29bp EBIT margin expansion, implying 16% YOY adjusted EBIT growth. With the outlook for stable markets and a healthy order backlog supporting organic growth, the asset-light model should continue to deliver strong FCF. This indicates ample financial resources for further M&A, with 15 acquisitions completed YTD. We reiterate BUY; our target price is up to SEK95 (92).
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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