Kinnevik (Sell, TP: SEK137.00) - Thinning the unicorn herd
The winter for unlisted companies has just started and we still see ~50–60% reset potential as public valuations filter through the VC industry. We have downgraded Kinnevik to SELL (HOLD) and trimmed our target price to SEK137 (140) as we expect a further ~25% write-down of its unlisted portfolio which, at a 8% discount to our NAV, offers a slim cushion. Timing is key as the VC cycle worsens and although we admit that the slightest signal of an interest rate peak could be a share-price catalyst for Kinnevik, we still believe negative short-term fundamental effects should offset this.
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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