Nordic Paper Holding (Buy, TP: SEK50.00) - Underlying tail- and headwinds
Q4 results showed two worlds: a strongly performing Kraft Paper area and a Natural Greaseproof area not able to raise prices fast enough to balance high raw-material and energy costs. With H1 likely to be similar, the recent acquisition of Glassine Canada and more-favourable FX more than balance out the cost headwind, in our view; thus, we have raised our 2022–2024e EPS by 7–11%. We see Nordic Paper as mainly a yield case, with the proposed DPS of SEK2.00 (yield: 5.7%) offering support. We reiterate our BUY and SEK50 target price.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.