Latour (Hold, TP: SEK210.00) - Consensus still digging a hole
We believe that consensus is too focused on Latour’s 31% premium to a conservative reported NAV, which screens as rich to us. Looking at the details, we believe that 17%-points of its 15-year 22% annualised TSR is driven by NAV growth rather than a discount to NAV re-rating. Applying 25x EV/EBIT, in line with M&A compounders, which Latour’s Industrial Operations is outperforming, we believe that Latour is trading roughly in line with NAV. We have upgraded to HOLD (SELL), with a new SEK210 (170) target price, based on a 5% premium to our 12-month forward NAVPS of SEK200.
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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