Tougher comparisons in Q3e
We believe strong demand has continued in the Nordics, but due to tougher comparisons and softer retail demand in the UK, we expect organic growth of only 2% YOY in Q3 (H1e: 5%, consensus: 2%). We expect a 2017–2019 EBIT CAGR of 7%, and see upside potential from acquisitions and continued margin expansion. We reiterate our BUY recommendation, but have cut our target price to SEK110 (115), mainly on valuation. The Q3 results are due on 27 October.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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