Essity (Buy, TP: SEK240.00) - Risk/reward turning, up to BUY
Raw materials headwinds remain a challenge; however, with price adjustments and new cost-saving measures, we consider the weak Q3 report a turning point. With consumer staples having turned a relative outperformer in general and Essity turning more positive from a FCF-generating perspective, the risk/reward now looks more attractive to us and we have upgraded the stock to BUY (HOLD), with an unchanged target price of SEK240.
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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