Similar headwinds to persist in Q2

Q2 due Friday 16 Aug, '24e-'26e adj. EBIT down 5-2%; -4% CAGR '23-'26e, keep SELL, TP SEK 40 unchanged

NL/UK: May figures weak in NL, strong in UK

In it together? Ownership alignment update

Management ownership has increased. Great alignment at ABB, good at Volvo, Alfa, Hexagon, and Metso. Low direct ownership at Epiroc and (despite some improvement) SKF.

Aker Biomarine (Buy, TP: NOK90.00) - Selling FI at strong valuation

The sale of Feed Ingredients (FI) for USD590m was a strong achievement and USD90m above our estimate, adding NOK11/share versus our SOTP of NOK90. Extraordinary DPS of NOK35–45 and strategic focus on partnerships/transactions for the remaining assets were also positives. We see the shares up 13–18% tomorrow.

Nokian Tyres (Hold, TP: EUR8.50) - Below consensus for Q2e

We expect a muted Q2, still burdened by additional logistics and warehouse costs. We are c13% below consensus on Q2e clean EBIT, after shifting our expectations on back-end loaded profit generation. Encouragingly, the company is making headway in rebuilding its capacity, although we believe risks remain. We reiterate our HOLD, but have lowered our target price to EUR8.5 (9) on minor estimate revisions.

Aker BP (Hold, TP: NOK290.00) - Fairly valued and lacking catalysts

Despite beating consensus by 3%, we found Q2 production of 444kboed slightly disappointing, down from 448kboed QOQ and 3% below our 458kboed estimate. While we have raised our Q2e oil and gas prices, the positive effect is offset by our reduced 2024e production from 445kboed to 438kboed. Trading at a ~5% premium to NAV, we find the stock fairly valued. With limited potential near-term catalysts, we have downgraded to HOLD (BUY), but reiterate our NOK290 target price.