Kinnevik (Hold, TP: SEK210.00) - Fear of more markdowns to come
Kinnevik’s 10% write-down of its unlisted assets (~45 of NAV) was overall in line with our expectations. We appreciate Kinnevik’s increased efforts to help investors understand its valuation framework, but based on the new insights provided yesterday, we are concerned about further markdowns in Q2, given its unlisted portfolio-weighted 2022e EV/sales of ~15x versus peers at ~7x (despite being fairly in line on growth-adjusted multiples). We still believe Kinnevik represents an appealing holding medium-term as the market implicitly expects it to generate an IRR of 5% on its unlisted growth assets to 2024e (30%+ track record), but see further write-down risks weighing on near-term investor sentiment. Thus, we have downgraded Kinnevik to HOLD (BUY) and cut our target price to SEK210 (320).
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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