DnB Markets - Instalco AB (INSTAL) Instalco AB (Buy, TP: SEK48.00) - Continued margin discipline

Report

DnB Markets

Johan Skoglund

EUR 458.03 For Business Accounts Only

Instalco AB (Buy, TP: SEK48.00) - Continued margin discipline

Q1 saw sales and EBITA just below consensus on slower growth, but with a maintained margin. Instalco’s technical consultants also had above-group margins, a significant improvement from 2023, which could be an early positive sign for late-cycle business. We reiterate our BUY, but have cut our 2024–2025e EBITA by 4–5% and our target price to SEK48 (52), as personnel cuts could hurt organic growth short-term.

03/05/2024 1 EN

Underlying

Instalco AB

Instalco AB Formerly known as Instalco Intressenter AB. Instalco Intressenter AB is a Sweden-based installation and service supplier within areas of heating and plumbing, electrical, ventilation, cooling and industrial solutions. The Company offers installation and regular repairs of district heating, plumbing replacement, new construction and preventive maintenance; design, installation, and maintenance of electrical installation; technical solutions and installation of ventilation solutions for air treatment, air conditioning and indoor climate; design, installation and maintenance of water sprinklers; industrial pipe systems, machinery installation and installations of cooling systems, as well as installation of switchgear, transformers, busbars and power stations, among others. The services are designed mainly for commercial premises, housing, public construction, warehousing, offices and retail trade, as well as process industries. The Company operates in Sweden, Norway and Finland through numerous subsidiaries.

See profile

SE0009664253 Nasdaq Nordic Stockholm Sweden

Provider

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.

See profile

Analysts

Johan Skoglund

Other Reports on these Companies

DnB Markets

Instalco AB (Buy, TP: SEK52.00) - Still-attractive valuation

We believe accelerating negative organic growth YOY is well-reflected in consensus and market expectations ahead of the Q1 results. Furthermore, 2024 could mark a trough year for EPS should interest rate cuts materialise and sector activity pick up towards end-2024. We believe the stock continues to show attractive risk/reward, and reiterate our BUY and SEK52 target price.

Free Trial

April 16, 2024 April 16, 2024 1 EN

DnB Markets

Instalco AB (Buy, TP: SEK52.00) - Strong cash generation in Q4

We believe Instalco’s Q4 achieved satisfactory results, with net sales and EBITA 2% and 3% above our estimate, respectively. The EBITA margin held up well YOY and cash flow was strong. We reiterate our BUY, and have raised our target price to SEK52 (48) after rolling our valuation into 2024–2025.

Free Trial

February 15, 2024 February 15, 2024 1 EN

Metsa Board (Buy, TP: EUR11.00) - Scope for a revaluation

With ample evidence of improved demand for paper board and a better price outlook for market pulp, we believe earnings headwind has now turned into a tailwind. We also expect earnings to be driven by incremental volumes after capacity expansions at existing mills. After ambitious investments over the past three years, the company’s paper board capacity is up c25%, while its net long pulp position has increased by close to 30%. We have upgraded to BUY (HOLD) and raised our target price to EUR11 (7.7) on our increased estimates including higher dividends.

Free Trial

May 17, 2024 May 17, 2024 1 EN

Patrik Ling

Patrik Ling

BioArctic (Buy, TP: SEK350.00) - Limited news on EU approval

The Q1 report was in line with expectations, with a small beat on the operating loss. The cash position at end-Q1 was nearly SEK1bn. There was limited news on the delayed EU approval (waiting on a SAG meeting). Eisai recently guided for Leqembi sales of JPY56.5bn (year to March 2025), implying royalties to BioArctic of cSEK360m. We reiterate our BUY and SEK350 target price.

Free Trial

May 17, 2024 May 17, 2024 1 EN

Jonatan Andersson

Jonatan Andersson

Surgical Science (Buy, TP: SEK230.00) - Weaker than expected start to 2024

The weak Q1 results, with sales and adj. EBIT below our estimates, were largely due to a significant slowdown in Educational products. We have marginally revised our 2024–2026e on the strong management outlook for 2024, and reiterate our BUY and SEK230 target price. We believe the weak share price reaction on the report presents an opportunity for long-term investors.

Free Trial

May 17, 2024 May 17, 2024 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Instalco AB (Buy, TP: SEK48.00) - Continued margin discipline

Instalco AB (Buy, TP: SEK52.00) - Still-attractive valuation

Instalco AB (Buy, TP: SEK52.00) - Strong cash generation in Q4

Metsa Board (Buy, TP: EUR11.00) - Scope for a revaluation

BioArctic (Buy, TP: SEK350.00) - Limited news on EU approval

Surgical Science (Buy, TP: SEK230.00) - Weaker than expected start to 2024

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe