Latour (Hold, TP: SEK260.00) - Robust, but fairly valued
Latour is trading at a hefty 54% premium to its (conservatively) reported NAV; however, applying a 2021e EV/EBIT of 32x (broadly in line with M&A compounder peers) to its unlisted Industrial Operations, this falls to just an 8% premium (based on our NAV). For the first time ever, Latour gave this as a possible explanation for the rich valuation against reported NAV, and we expect sell-side analysts to increasingly shift to this approach. We reiterate our HOLD, but have raised our target price to SEK260 (210), based on a 5% premium to our 12-month forward target NAV/share of SEK247.
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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