Ncc (Buy, TP: SEK170.00) - Looking for signs of improvement
NCC is due to report its Q2 results on 19 July (around 08:00 CET); we will be looking for signs of a margin recovery in the Infrastructure and Building Nordic divisions. While we expect EBIT margins to be subdued, with zero-margin orders still on the books after the late-2018 project write-downs, many of these orders should exit the books towards 2020e, leading to margin and thus profitability and valuation improvements. We are largely in line with Q2 Bloomberg consensus, having trimmed our forecasts, mainly for the volatile Property Development division. We reiterate our BUY, but have cut our target price to SEK170 (173).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.
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.