Demant (Buy, TP: DKK220.00) - Covid-19 hit but good recovery
Covid-19 hit but good recovery Demant was severely hit by Covid-19 in Q2 across divisions, as highlighted in our preview. Organic growth declined by c27% in H1, which is better than both our expectation and consensus. Comments around the recovery rate in mid-August were also encouraging (-5–5%). The 2020 guidance was reinstated with organic revenue growth of 5–15% in H2 2020. We see consensus estimates up 5%+ for revenues but less for EBIT, and expect the stock to outperform today.William Demant Holding is a holding company. Through its subsidiaries, Co develops, manufactures and sells products and equipment designed to aid the hearing and communication of individuals. Co. focuses on four areas: Hearing Devices, Diagnostic Instruments, Hearing Implants and Personal Communication. Co.'s hearing devices include Oticon, Bernafon, Sonic, Phonic Ear, and FrontRow. Co.'s Hearing implant consist of Oticon Medical. Co.'s diagnostic instruments include Maico, Interacoustics, Amplivox, Grason-Stadler, MedRx, and Micromedical. Co.'s personal communication consists of Sennheiser Communications.
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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