Corem (Hold, TP: SEK4.80) - Another round of divestments
Being among the worst-performing stocks in the sector YTD, we view the Q1 results as fairly neutral. PFPM was 2% below our estimate, and the soft Q1 net lettings were expected following industry media coverage of the WSP termination. Looking forward, Corem is eyeing divestments of an additional SEK5bn. Trading at a 70% discount to NAV, we believe many negatives are priced in, but due to its high FFO sensitivity to vacancy changes, we consider the risk high. We reiterate our HOLD, but have cut our target price to SEK4.8 (5.8).
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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