Coor Service Management (Buy, TP: SEK77.00) - Down but not out after Ericsson loss
Coor announced the loss of its oldest client, Ericsson, which chose to consolidate its IFM volumes with one global supplier. Thus, we have cut our 2024–2025e EPS by 9–10%, but we still see headroom for Coor to maintain its high dividend payout given its strong FCF generation lending downside support. We reiterate our BUY but have cut our target price to SEK77 (100), with the company still suggesting a good pipeline of contracts to offset the loss.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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