Fabege (Buy, TP: SEK85.00) - Attractive implied asset valuation
The Q3 results were solid, and we have made minor estimate changes. Fabege reported a lower vacancy rate and positive net letting, but letting activity was low and raises questions regarding rental market strength. We reiterate our BUY as we consider Fabege an attractive deep-value case with favourable risk/reward, despite market headwinds. We have cut our target price to SEK85 (100), reflecting a 2024–2025e EBIT yield of 4.6–4.8% and conservative land-bank value assumption.
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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