Fabege (Hold, TP: SEK100.00) - High indexation removing ‘cushion’
We see many risks as priced in at Fabege’s 45% discount to its last reported NAV. However, we have downgraded to HOLD (BUY) due to 1) a growing risk of falling market rents as its rents are no longer below market rents (due to 2023 indexation); 2) a lack of catalysts; and 3) Q4 project write-down raising concern about little earnings contribution for 2023–2024e. We have cut our target price to SEK100 (110) on a tweaked valuation yield.
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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