Jm Ab (Sell, TP: SEK155.00) - Hockey-stick recovery unlikely
The share price has rallied on the peak interest rate narrative, improved consumer sentiment and short covering, but new housing sales remain weak QTD. We expect Q1 profit to miss Infront consensus on price cuts, but starts to be above (results due at 08:00 CET on 23 April). Overall, we believe the share price has run too far ahead of the recovery and profit lead times are much longer than reflected in market expectations. We reiterate our SELL, but have raised our target price to SEK155 (130).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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.