Elektroimportøren (Buy, TP: NOK18.00) - Profit warning and risk of covenant breach
Elektroimportøren has issued a profit warning stating it is at risk of breaching its NIBD/EBITDA covenant in Q1 2024 as the market has been weaker than expected since December. The company has initiated a dialogue with its bank to obtain a waiver or to refinance the existing facilities. We believe a negative share price reaction in the range of 10–20% is warranted, as we believe the risk of a new equity raise has increased if the company fails to reach an agreement with its bank.
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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