Kinnevik (Hold, TP: SEK165.00) - Many (but not all) negatives priced
Kinnevik has been a casualty of the tech stock sell-off (-52% YTD), sending its premium to NAV to close to an all-time high discount (30%). With net cash of SEK14bn and its Tele2 holding representing ~50% of NAV, we find a downside cushion. That said, we still believe the VC cycle could worsen before sentiment improves and that Kinnevik’s unlisted valuations appear inconsistent with public markets. We expect a further 18% markdown of its unlisted portfolio, reiterate our HOLD and have cut our target price to SEK165 (210).
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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