Nibe Industrier (Hold, TP: SEK115.00) - Operational excellence
We reiterate our HOLD but have raised our target price to SEK115 (90) and our 2021–2022e adj. EBIT by 12% (10–8% underlying). The Q2 report supports our view of a sound long-term growth case as North America is showing signs of returning to growth in Climate Solutions at 12% FX-adjusted growth in Q2 (-8% in Q1). Raw materials headwinds have been a key investor concern, but with a Q2 gross margin of 95bp QOQ and 28% operating leverage, we believe Nibe’s decentralised model is showing resilience. As the stock is trading at a 2022e EV/EBIT of 52.5x, the growth potential seems more than priced in even for a premium company like NIBE.
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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