Essity (Hold, TP: SEK320.00) - Scaling well to meet high demand
Essity pre-released its Q1 results, showing an impressive ability to meet unprecedented Covid-19 tissue demand in March, setting up record volume growth and a strong price/mix, with adj. EBITA ~25% above expectations. We have raised our 2020e EPS by 10%, and the fast de-gearing of the balance sheet is adding new possibilities. We still find the shares in neutral absolute and relative valuation territory, and thus reiterate our HOLD, having adjusted our target price to SEK320 (310).
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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