Hexpol (Sell, TP: SEK65.00) - Glory days are over
Hexpol is no longer what it once was, and we have downgraded the stock to SELL (HOLD) and cut our target price to SEK65 (85). We believe: 1) it will struggle to live up to its strong M&A track record; 2) its margins have peaked, leaving downside for the future; and 3) the shares no longer deserve a premium valuation and should de-rate. We forecast a 2017–2020 EBIT CAGR of only 1.5%.
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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