Kinnevik (Hold, TP: SEK340.00) - Meeting already high expectations
Kinnevik still offers the sector’s most attractive medium-term NAV growth outlook, in our view. As the market implicitly values Kinnevik’s unlisted portfolio ~45% above its reported values, its 19% premium to NAV suggests that the market assumes it can generate an IRR of ~30% from its unlisted portfolio over the next five years (3.5x ROIC). This is below its recent IRR track record for its growth portfolio, which we estimate at ~55%. However, we believe expectations are already high, which makes the short-term risk/reward profile more balanced. We reiterate our HOLD, but have reduced our target price to SEK340 (350).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.