Coor Service Management (Buy, TP: SEK75.00) - 6.0% dividend coupon in late April
We see acceleration in net sales growth to 10% in Q1e based on solid organic growth (up 5.7% YOY) and the recent acquisitions; however, these are also holding back the profit margin expansion (down 28bp YOY), indicating an adj. EBITA of SEK130m (up 6% YOY). The Q1 results are due at 7:30 CET on 26 April. We still like the FCF profile, low operational risk and potential for value-enhancing acquisitions. The annual dividend is due in late April (direct yield 6.0%), giving strong yield support. We reiterate BUY and our SEK75 target price.Coor Service Management Holding AB is a Sweden-based company engaged in the business support services industry. The Company specializes in integrated facility management (IFM), including both soft and hard kinds of services, such as cleaning, reception, catering, post and parcel, strategic consulting and others. The services can be offered as single or package. The Company operates across Sweden, Finland, Norway and Denmark.
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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