Holmen (Hold, TP: SEK450.00) - In good control
Due to better-than-expected volumes for the board and paper division and stronger than expected earnings for the forestry operations, Q1 earnings were above our forecast. Thanks to the unique business model with close to 50% backward integration in its own wood, Holmen has unique cost control and, as we also believe the business cycles for its industries are at cyclical troughs, we have turned less negative on the stock. Still, due to a rich valuation, we do not see meaningful upside potential at current levels. We have upgraded to HOLD (SELL) and raised our target price to SEK450 (370).
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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