Report
Joachim Gunell
EUR 85.18 For Business Accounts Only

Industrivärden (Hold, TP: SEK315.00) - Discount expansion to offset NAV growth

Industrivärden’s C-shares have enjoyed a strong re-rating in recent months and are trading at a 0% discount to NAV. Based on our updated portfolio view, we forecast 5% 12-month forward NAV growth, which is offset by our view that the discount to NAV should widen to 5%, and possibly even 10%, given that Industrivärden offers a 100% static listed and easily replicated portfolio with a NAV CAGR track record of 11% in the past 15 years corresponding to a no.11 position among the Nordic investment companies. Thus, we reiterate our HOLD with a new SEK315 (300) target price, although we believe consensus could increasingly focus on the all-time low discount to NAV, which could fuel estimate reductions in the near term.
Underlying
Industrivarden AB Class A

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Joachim Gunell

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