Jm Ab (Hold, TP: SEK170.00) - Set to be a slow recovery
The Q4 results were a mixed bag, with revenues beating expectations, boosted by project starts, impairments resulting in an EBIT miss, and mixed KPIs. However, we believe the Q4 spike in unsold inventory (new all-time high) likely poses JM’s biggest challenge entering 2025, as it could hold back new starts by tying up capital. We reiterate our HOLD and SEK170 target price; we still expect a profit recovery to take longer than is reflected in the share price and see a better risk/reward elsewhere.JM is a developer of housing and residential areas in the Nordic region. Co. focuses its operations on new production of homes, with the main focus on metropolitan areas and university towns in Sweden, Norway, Denmark, Finland and Belgium. Co. is also involved in project development of commercial premises and contract work, primarily in the Greater Stockholm area. Co. is divided into five business units: JM Residential Stockholm, JM Residential Sweden, JM International, JM Property Development and JM Production.
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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