Lundbergs (Hold, TP: SEK485.00) - Defensive drivers played out
The defensive and quality characteristics of Lundbergs’ portfolio remain favourable in this uncertain market environment, as evidenced in its NAV outperformance YTD (-17%, versus large-cap peers’ -22% and SIXRX’s -31%). Our portfolio view no longer offers enough upside potential as we forecast just 2% NAV growth in 2023 while the implied 7% discount to its current NAV given the discount-on-discount effect from the Industrivärden holding is not enough to hold our attention. We have therefore downgraded Lundbergs to HOLD (BUY) but we reiterate our SEK485 target price.L E Lundbergforetagen AB is an investment company that manages and develops a number of companies. The asset portfolio includes the wholly owned real estate company, Fastighets AB L E Lundberg, the publicly traded subsidiaries, Hufvudstaden and Holmen and the associated companies, Indutrade and Husqvarna. Co. also has major shareholdings in Industrivarden, Handelsbanken, Sandvik and Skanska. Co.'s subsidiary, L E Lundberg Kapitalforvaltning, is engages in securities trading. Operations consist of real estate operations, the manufacture and sale of printing paper, paperboard and sawn timber products, forest and power operations, and equity management (including securities trading).
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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