High potential returns, but high risk
With its low common share equity, Klövern remains the sector’s highest-risk stock, in our view, on both tax law proposals and increased interest rates. However, as long as Swedish interest rates remain at current levels, it looks set to remain a cash earnings outperformer. With a strong Stockholm rental market, we expect its Globen development plans to succeed. We are below consensus ahead of Q3 (results due at 08:00 CET on 19 October). Based on high expected equity returns, we reiterate our BUY recommendation and have raised our target price to SEK13 (11).
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.