Nordic Paper Holding (Buy, TP: SEK50.00) - Unwarranted discount
While we expect higher/volatile electricity and gas prices to have a significant impact on Nordic Paper’s operating costs in Q3, we also expect price rises to neutralise much of this in the coming quarters. Nonetheless, reflecting increased near-term earnings risk, we have lowered our 2022–2023e EBIT by 2–4%. As well as having a robust balance sheet, Nordic Paper is trading at an attractive 2023–2024e P/E of 6x and a attractive dividend yield of close to 9%. We reiterate our BUY, but given our estimate changes and earnings risk, have cut our target price to SEK50 (60).
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.