Humana (Buy, TP: SEK78.00) - Tough start for new CEO
The new CEO, Johanna Rastad, did not meet expectations in her first quarter, but we view most of the weak points as temporary. Humana again needs to re-establish its credentials with investors, now in a welfare service universe that has fallen out of favour after Orpea’s quality failure led to falling sector valuations. Our forecasts are broadly unchanged, but peer valuations and our raised DCF risk premium have led us to cut our target price to SEK78 (90), with the still attractive valuation leading us to reiterate our BUY.Humana AB is a Sweden-based care provider. It operates through four segments: Individual & Family, Personal Assistance, Elderly Care and Other Nordics. The Individual & Family segment provides psychosocial disorders and mental illness care. The Personal Assistance segment provides personal assistance to people with functional disabilities. The Elderly Care segment provides housing for the elderly. The Other Nordics segment covers the Company's developing market operations in the area. It operates in Sweden, Norway, Finland and Denmark.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.