Holmen (Sell, TP: SEK370.00) - Weak earnings momentum
We consider Holmen a quality company and continue to like its shareholder-friendly strategy. However, as c50% of the 2023 EBIT was derived from the traditional paper business (for which addressable markets are shrinking), and with still-tough markets for the paperboard business and lower spot prices for electricity affecting the renewable power business, we expect earnings to decline for 2024. Given relatively rich earnings multiples, we reiterate our SELL and SEK370 target price.
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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