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

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DnB Markets

Johan Skoglund

EUR 476.10 For Business Accounts Only

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.

15/02/2024 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.

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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.

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Analysts

Johan Skoglund

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

Instalco AB (Buy, TP: SEK55.00) - Navigating through rough seas

Instalco AB (Buy, TP: SEK55.00) - Not expecting any drama in Q2

Instalco AB: 1 director

Truecaller (Buy, TP: SEK60.00) - iOS product a game changer

Paratus Energy (Buy, TP: NOK70.00) - Mexico concerns remain

Benchmark Holdings Plc (Buy, TP: NOK7.00) - Divesting genetics business

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