The weekly navigator

From the past week, we highlight: 1) we raised our target price on Kinnevik to SEK110 (105) following QOQ NAV growth in Q4; 2) our bullish view on Latour’s 2025e earnings growth potential ahead of its Q4 report, due on 11 February; and 3) insider purchases at Investor, in our view a signal to look beyond the relatively small discount to NAV.

Momentum builds for 2025e

Coor Service Management (Buy, TP: SEK48.00) - Signs of promising turnaround

Q4 was weak across the board, but in line with Coor’s pre-announcement. We see promising signs of a turnaround in Q1, as its efficiency programme is enacted and the first working capital release should improve FCF. Coor is showing confidence in keeping a DPS (albeit lower) of SEK1.50 and detailing its first share buybacks (SEK50m). We have tweaked our 2025–2027e EPS, reiterating our BUY and SEK48 target price, seeing a solid turnaround case at an attractive valuation.

Sparebanken Sør (Buy, TP: NOK224.00) - Solid core revenues and costs

Aided by lower costs and improved fee income, SOR reported a Q4 ROE of 9.8%, despite some margin pressure. The board proposed a 2024 DPS of NOK12.21, implying a ~67% payout ratio (~50% policy) and 6.0% dividend yield. The bank guided for a c2.8%-point benefit from the upcoming new standard method. We reiterate our BUY and NOK224 target price to reflect the agreed exchange ratio and our target price for SVEG.

Sparebanken Vest (Buy, TP: NOK156.00) - Further core revenue tailwinds

Helped by continued core revenue tailwinds and low loan losses, SVEG reported a Q4 ROE of 17.6%, despite a cost uptick after consolidating Frende Kapitalforvaltning. The board proposed a 2024 DPS of NOK8.5, implying a ~51% payout ratio and 6.1% dividend yield. With the stock trading at a dividend-adjusted 2026e P/E of 9.9x and the longer-term synergy potential from the pending merger, we continue to find the valuation undemanding. Thus, we reiterate our BUY and NOK156 target price.