Fortnox (Buy, TP: SEK82.00) - Improving fundamentals in Q3e
Short interest is all-time-high after the recent FT scepticism and CEO announcing his departure. We would have preferred to see the CEO execute the next five-year plan, and believe this could keep some investors on the sidelines until a successor is found. We expect short-term uncertainty to decline due to 1) Q3 organic growth acceleration to 28% YOY; 2) we are 2% above Bloomberg consensus on seasonally important Q3e EBIT; and 3) we expect a step-change in FCF. We reiterate our BUY with a reduced target price of SEK82 (84), and note insider buying of SEK42m thus far in Q3.
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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