Nordic Paper Holding (Buy, TP: SEK54.00) - Q4 proves healthy pricing power
Due to stronger prices for kraft paper and greaseproof paper, Q4 EBITDA of SEK260m significantly beat our forecast. Management indicated c5% lower prices entering 2023; however, with strong Q4 earnings, we find this quite optimistic and have raised our 2023e EBITDA by close to 10%. Based on this and a higher than forecast proposed DPS of SEK4.65, we have increased our target price to SEK54 (52). We reiterate our BUY.
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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