Report
Karl-Johan Bonnevier
EUR 463.07 For Business Accounts Only

Essity (Hold, TP: SEK320.00) - Re-establishing its financial muscle

Essity’s Q1 results showed an impressive ability to meet Covid-19-related tissue demand, setting up record volume growth and a record price/mix to input cost benefit, something we expect to reverse into negative territory from Q3. Strong FCF and rapid deleveraging are opening new possibilities for 2021e, and we still view Essity as a relative safe haven. We also find the shares in neutral absolute and relative valuation territory, and therefore reiterate our HOLD and SEK320 target price.
Underlying
Essity AB Class B

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Karl-Johan Bonnevier

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