LeoVegas (No_rec, TP: SEK) - Discontinuing coverage

We have discontinued coverage of LeoVegas. Our last published recommendation, target price and estimates should no longer be relied upon.

Northern Lights

LeoVegas (Hold, TP: SEK61.00) - Finally made the big time

Following MGM’s SEK6bn bid for LeoVegas, equivalent to a blended average 2022–2023e adj. P/E of c15x on our new estimates, we have raised our target price to SEK61 (48) and downgraded to HOLD (BUY). Considering the board recommended MGM’s bid over several other parties’ non-binding proposals and the CEO/founder’s ‘irrevocable undertakings’, we see a high likelihood for the deal to be finalised and close in H2.

Sandnes Sparebank - Initiation of coverage - The regional challenger

With cNOK29.5bn of lending at end-2023 and a pending merger with Hjelmeland Sparebank, Sandnes Sparebank has secured a strong market position in Rogaland. Supported by positive regional sentiment, distribution of customer dividends and potential capital tailwinds from Basel IV, in addition to still-favourable sector trends, we see scope for solid earnings generation. That said, trading at a 2025e P/E of ~9.0x, we find the valuation fair and initiate coverage with a HOLD and NOK104 target price.

Wihlborgs (Buy, TP: SEK100.00) - Back up to BUY ahead of Q1

We have upgraded Wihlborgs to BUY (HOLD) and raised our target price to SEK100 (90). We no longer see a near-term risk to the stock from material asset write-downs, but rather expect investors to focus on healthy momentum in lettings at Wihlborgs. With a positive outlook for Q1, we forecast strong net lettings, and are 3% above Infront consensus on profit from property management (PFPM). The results are due at 07:30 CET on 23 April.

Norske Skog (Buy, TP: NOK54.00) - Moving in the right direction

Due to a less-positive view on prices in combination with a more cautious view on the ramp-up of Norske Skog’s conversion investments in packaging, we have yet again made hefty negative revisions to our 2024–2025e. Still, we believe the long-term transformational case in Norske Skog remains intact while the balance sheet is robust. On a positive side, we note that test liner prices in continental Europe are up c10% in April after being under pressure for six quarters. Still, reflecting our significantly lowered estimates, we have cut our target price to NOK54 (60) but reiterate our BUY.