Large forest deal at EV/EBITDA 36-60x

Mar: Pulp shipments +7% y-o-y

Norske Skog (Buy, TP: NOK30.00) - High risk, but potential high reward

Although we have lowered our 2025–2026e EBITDA by 17%–4% on higher ramp-up-related costs, we find the Q1 report positive overall. Besides slightly better underlying Q1 earnings compared to our forecast, management remains firm that the balance sheet situation is under good control at the same time as the long period of ambitious growth investment is ending in H2. Thus, we continue to see attractive cash flows from 2026e and a strong revaluation potential if our earnings forecasts materialise. We reiterate our BUY and NOK30 target price.

Airthings (No_rec, TP: NOK) - Recommendation and target price withdrawn

As a result of DNB Markets acting as financial advisor in conjunction with the company’s announcement (link) of a strategic review prompted by a non-binding letter of intent from Firda AS to explore a potential sale of its business segment assets, we have withdrawn our target price and recommendation.

SpareBank 1 Helgeland (Hold, TP: NOK167.00) - Softer margin, but lower costs

Helped by still-solid core revenues, cost reduction YOY and moderate loan losses, HELG reported a Q1 ROE of 12.3%, despite some margin pressure. With solid earnings generation, the bank increased its CET1 ratio by ~20bp to 18.0% and still guides for a 0.8%-point benefit from the implementation of Basel IV, boding well for meaningful distributions. We have lowered our 2026–2027e EPS by 0–1%, That said, we reiterate our target price of NOK167. With the stock trading at a 2026e P/E of ~12.4x, we continue to find the valuation fair and reiterate our HOLD.

Smartoptics (Buy, TP: NOK27.00) - We remain optimistic

Smartoptics’ Q1 results marked a slower start to the year than we forecast, primarily owing to weaker sales in Devices, which seems to be back to near-term tariff-induced uncertainty. On the flip side, we understand the slowdown seen towards end-Q1 has already caught up again in order inflow, and thus we remain upbeat for the quarters ahead. Following an estimate reduction, we have lowered our target price to NOK27 (30) but reiterate our BUY.