Jm Ab (Sell, TP: SEK135.00) - Q2 hurt by weak markets
JM reported Q2 EBIT (POC) 23% below our forecast and 27% below Infront consensus, hit by cost-cutting charges of SEK67m and weak underlying EBIT margins. The number of unsold completed homes jumped to 266 units, the second highest on record after Q2 2009. While unit sales and starts should improve in 2024–2025e, we continue to see downside risk to consensus. We reiterate our SELL and have cut our target price to SEK135 (140).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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