Latour (Buy, TP: SEK260.00) - Defying construction concerns
Q4 results were above our forecast with still-strong demand, higher profitability, and proposed DPS growth of 12% YOY indicating confidence. We reiterate our BUY based on: 1) 10% NAV growth from its listed portfolio; 2) a 25x EV/EBIT for its Industrial Operations (in line with peers); and 3) a 10% target premium to our 12-month forward NAV to reflect that ~45% of NAV outperformance versus peers and benchmark indices stemming from its non-replicable unlisted Industrial Operations. We have raised our target price to SEK260 (225).Investment AB Latour is a mixed investment company. Co.'s operations are primarily carried out in two business lines: the wholly owned industrial operations and a portfolio of listed holdings. Co.'s wholly owned industrial operations consist of companies that develop, produce and market their own products in customer segments that represent considerable international demand. Co.'s investment portfolio consists of nine companies where it is the principal owner or one of the principal owners and where it controls at least 10.0% of the votes. In addition to the two principal business lines, Co. owns a number of part owned unlisted operations.
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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