Latour (Hold, TP: SEK270.00) - Quality at a fair price
YTD, the average sector premium to NAV has been eroded by 17%-points following the historical bear markets, meaning some investors could continue to view Latour’s 45% premium to reported NAV as unwarranted. However, our view is intact after the strong Q1 results, with Latour’s unlisted Industrial Operations (~40% of NAV) showing standout operational execution, and we believe the stock should be benchmarked against industrial M&A compounders – which it is outperforming on many metrics. We apply a 2022e EV/EBIT of 29x to its unlisted assets (peers are trading at 20–30x) that leaves our premium to intrinsic NAV at 9%, which we feel fairly reflects Latour’s strong track record and quality assets. We reiterate our HOLD but have lowered our target price to SEK270 (280).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.
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.