Norske Skog (Buy, TP: NOK54.00) - Moving in the right direction
Due to a less-positive view on prices in combination with a more cautious view on the ramp-up of Norske Skog’s conversion investments in packaging, we have yet again made hefty negative revisions to our 2024–2025e. Still, we believe the long-term transformational case in Norske Skog remains intact while the balance sheet is robust. On a positive side, we note that test liner prices in continental Europe are up c10% in April after being under pressure for six quarters. Still, reflecting our significantly lowered estimates, we have cut our target price to NOK54 (60) but reiterate our BUY.Norske Skog ASA is a Norway-based company engaged in the paper industry. The Company manufactures, distributes and sells publication paper and pulp, including long and short fiber sulphate pulp, newsprint, magazine and bleached kraft paper, and particle boards. Its business activities are divided into two operating segments: publication paper Europe and publication paper Australasia. The publication paper Europe segment includes production and sale of newsprint and magazine paper in Europe. The publication paper Australasia segment includes production and sale of newsprint and magazine paper in Australasia. It owns and operates paper mills in Norway, France, Austria, Australia and New Zealand.
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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