Nobia (Buy, TP: SEK62.00) - 2020e EBIT cut, 2021–2022e intact
We reiterate our BUY and SEK62 target price after Nobia confirmed the preliminary Q1 results released on 14 April. We have, however, lowered our 2020e EBIT by c30% as we now expect Nobia to be loss-making in Q2, primarily due to costs associated with the UK being in lockdown. Our 2021–2022 estimates are broadly unchanged, and we consider the 5.1x 2021e EV/EBIT (IFRS16-adjusted) attractive in light of Nobia’s market-leading position, solid cash flow and room to further rationalise its manufacturing footprint.Nobia is a kitchen company based in Sweden which maintains operations in ten countries. Co. is engaged in the development, manufacture and distribution of interior solutions for kitchens, bathrooms and storage. Co. manufactures and sells complete kitchen solutions through many strong local and international brands, including Magnet in the United Kingdom, HTH in the Nordic region, Hygena in France and Poggenpohl internationally. Sales are generated through specialized kitchen studios, retailers and direct to corporate customers. Co. maintains a portfolio of approximately 19 strong brands sold mainly in Europe, but also worldwide.
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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