Bravida (Buy, TP: SEK90.00) - Market support remains healthy
Q1 looks set to be another strong quarter for the order book. We see good organic growth (4.3% YOY) and expect some profit margin expansion (+17bp YOY), suggesting 14% adj. EBIT YOY 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 five acquisitions already announced YTD. We reiterate BUY and have increased our target price to SEK90 (89).Bravida is a Nordic region end-to-end provider of technical installations and service for buildings and industrial facilities. Co. offers integrated solutions in electrical, heating & plumbing and HVAC. Co. provides end-to-end services within these three areas, from consulting and project planning, to installation and service. Co.'s electrical installation business offers integrated solutions for lighting, heating and energy supply. Co.'s heating & plumbing segment provides integrated solutions for water, waste water, energy, heating and cooling.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.