Norske Skog (Buy, TP: NOK44.00) - Staying the course
Norske Skog’s Q1 sales were in line with consensus, but the EBITDA margin was surprisingly good given the record-low paper prices in Europe. Cost-efficiency measures seem to be bearing fruit, mitigating the strong cost inflation in recycled fibre. The company announced a FID for the containerboard investment in Bruck, and expects to follow up with the Golbey FID in Q2. In our view, Norske Skog is navigating tough paper markets while making progress in transformative investments. We reiterate our BUY and have raised our target price to NOK44 (40).
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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