Hexpol (Hold, TP: SEK79.00) - 2019e EBIT cut by 8%
The organic decline in volumes Hexpol saw in Q4 indicates that 2019 is likely to be a tougher year than we originally expected. We have lowered our 2019e organic growth estimate from +3% to -2%, resulting in an 8–9% cut to our 2019–2020e EBIT. We reiterate our HOLD, but have lowered our target price to SEK79 (83), based on a 2019e EV/EBIT in line with the Nordic Capital Goods sector at 11.9x.
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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