Corem (Hold, TP: SEK10.50) - Net lettings above expectations
The Q2 results were somewhat better than expected. On our lower market interest rate assumptions, we have raised our trough 2025–2026e FFOps by 34-47%. We believe the near-term refinancing risk continues to improve, while our focus is on 2025-2026 ICR (we forecast 1.8–1.9x) and how it is affected by project completions and the end of capitalised interest rate costs. Given the ICR outlook, we find the 4.9% implied EBIT yield unattractive, and remain on the sidelines. We reiterate our HOLD, but have raised our target price to SEK10.5 (9.5).
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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