Holmen (Sell, TP: SEK380.00) - Weak markets taking a toll
Due to Holmen’s backward-integrated business model with its own forest facilitating competitive wood sourcing, Q2 earnings were far stronger than most peers. Although we believe the integrated business model is likely to continue supporting earnings, Paper and Energy are facing price pressure. As we see weak earnings momentum, a rich valuation on our 2023–2024 estimates and a lack of positive catalysts, we reiterate our SELL and have cut our target price to SEK380 (390).
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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