Crayon (Buy, TP: NOK21.00) - Headwinds set to be short-lived
While 2018 and medium-term company targets were mostly unchanged from the IPO, abrupt changes in software vendor incentive rates hit Crayon’s profitability in Q4, and are likely to raise investor concerns short-term. We understand the incentive change to be permanent, but the effect on Crayon to be transitory, and see yesterday’s negative share price reaction as a buying opportunity. We still see the stock as significantly undervalued, and reiterate our BUY while we have trimmed our target price to NOK21 (NOK24).
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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