Nordic Paper Holding (Buy, TP: SEK60.00) - Proof of pricing power
Following a string of uninspiring earnings quarters, Q1 earnings growth for Kraft paper and Grease proof paper was impressive, thanks to price rises more than offsetting higher costs. As management also indicated margin expansion for Q2, we believe the investment case has turned more attractive. Following the Q1 results and a change of analyst, we reiterate our BUY and have raised our target price to SEK60 (50), having increased our 2022e but lowered our 2023–2024e. We expect the 2022e DPS to be raised to SEK3 (from SEK2 in 2021), implying an attractive yield of 7.6%.
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.