Netel Group Holding (Buy, TP: SEK22.00) - Still in transition mode
Netel’s Q4 results met our expectations, with a solid order backlog entering 2025; however, FCF was weak, implying a high gearing. We still see sound medium-term demand fundamentals and expect Netel to re-establish its quality credentials with investors, but have reset our estimates towards recent performance, with 18–12% EPS cuts for 2025–2027. We forecast a return to healthy investment-grade financials and see an attractive risk/reward; reiterate our BUY and SEK22 target price.
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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