Egetis: Multiple abstracts published ahead of the ETA

Ahead of the ETA conference Egetis published seven abstracts related to MCT8 deficiency and tiratricol. While two of the abstracts were already published, of which the tiratricol's benefit on mortality (note here), these new findings will further support the understanding of MCT8 deficiency and esp

Q2 report: pressing ahead with ReTRIACt

Bilia AB (Buy, TP: SEK150.00) - Recovery likely pushed to 2025

We are cautious ahead of the Q3 report, as a likely recovery in car earnings is pushed to 2025e, while we expect service earnings to be flattish on still-restrained consumer sentiment near-term. Nevertheless, with c+40% EPS growth in 2025e on a forecast new-car market recovery next year, we remain positive on the stock. We reiterate our BUY but have cut our target price to SEK150 (160), mainly on lower estimates.

Volvo (Hold, TP: SEK285.00) - Can’t see the road for all the trucks

We have downgraded Volvo to HOLD (BUY) and cut our target price to SEK285 (320) after lowering our 2025–2026e adj. EBIT by 13%, and are now 14–17% below consensus. Although the valuation appears low at 10x 2024e P/E, in our view downside potential to consensus from lower volumes and further price/mix normalisation in 2025e is a key concern for investors and should make the equity story less appealing over the coming year.

Nokia (Hold, TP: EUR3.90) - Weak Q3e to raise the bar for Q4e

We see Q3 as a clearing event, with our adj. EBIT 11% below post-Q2 Infront consensus, increasing the risk of a 2024 guidance cut, or at least raising the bar for a Q4-tilted hockey-stick earnings rebound. The stock is in value territory, and we acknowledge Nokia’s defensive aspects as we believe: 1) the patent portfolio could represent ~60% of its EV, valuing the stub at 5.0x 2026e EV/EBIT; 2) the earnings momentum story is coming closer; 3) a potential break-up as mentioned in the media would be welcomed by investors; and 4) Nokia’s option to acquire Nokia Shanghai Bell expires in two weeks....