Report
Simen Mortensen
EUR 478.99 For Business Accounts Only

Ncc (Buy, TP: SEK150.00) - Attractive on low-cycle estimates

We believe the stock screens attractively, even with our limited Property Development EBIT forecasts. We are below consensus on Q2e EBIT, due to a higher expected loss in the volatile Other/admin segment, and order intake. Despite our lower-than-consensus estimates, we reiterate our BUY and SEK150 target price, based on an attractive valuation and our long-term growth expectations.
Underlying
NCC AB Class B

NCC AB is a construction and property development company. Co. develops and builds residential and commercial properties, and constructs industrial facilities and public buildings, roads, civil engineering structures and other infrastructure. Co. also provides input materials used in construction and paving and road services. Co. operates three businesses: Industrial, which are based on stone materials and asphalt production, as well as asphalt paving and road services; Construction and Civil Engineering, which consists of NCC Construction Sweden, NCC Construction Denmark, NCC Construction Finland and NCC Construction Norway; and Development, which encompass housing and commercial property.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Simen Mortensen

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