Nordic Paper Holding (Buy, TP: SEK50.00) - Big capex project postponed, creating yield angle
Nordic Paper’s Q3 results were roughly in line with market expectations for this seasonally weak quarter. More importantly, the company announced a delay to the Bäckhammar investment plan, pushing the related capex and returns to 2023e and beyond. As a result, we have raised our DPS for 2022–2023e and see Nordic Paper mainly as a yield case in the medium term. We reiterate our BUY but have cut our target price to SEK50 (55).
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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