Kinnevik (Hold, TP: SEK260.00) - Market dislikes uncertainty
Our previous investment case for Kinnevik was based on: 1) management’s intensified efforts to crystallise the values of its unlisted assets; and 2) a Millicom exit that would accelerate its new strategic direction and trigger a re-rating of its high discount to NAV. As Kinnevik has been unable to achieve the latter, we believe its discount to NAV (currently 21%) will persist. Thus, we have cut our target price to SEK260 (310) and downgraded our recommendation to HOLD (BUY).Kinnevik is an investment company with holdings in the sectors of communication, e-commerce, entertainment and financial services. Co.'s holdings include Millicom, a telecommunications and media company providing digital lifestyle products and services to emerging markets, and Tele2, a telecom operator, providing mobile services, fixed broadband and telephony, data network services, cable TV and content services. Within e-commerce, Co. has focused its investments in the shoes and fashion segment through companies such as Zalando with geographical presence in Europe and companies such as Lamoda, Dafiti, Jabong and Zalora focused on emerging markets.
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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