Latour (Hold, TP: SEK280.00) - Focus on intrinsic NAV
We remain impressed by Latour’s value creation in its Industrial Operations and consider it fair that the market has changed its perception of how to value this part of Latour, particularly when benchmarked against M&A compounders such as Indutrade and Lifco. As peers have seen ~20–30% multiples contraction since our latest update, we have fine-tuned our NAV forecasts and now apply a 2022e EV/EBIT of 28x to its unlisted assets. This leaves us fairly neutral on the investment case and thus reiterate our HOLD; we have cut our target price to SEK280 (325).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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