Novonesis (Buy, TP: DKK500.00) - Strategic acquisition
We view the proposed acquisition of dsm-firmenich’s stake of the Feed Enzyme Alliance as a good strategic fit, expanding Novonesis’ presence across the animal biosolutions value chain. In our view, the EUR1.5bn acquisition price is slightly too high (21.4x EV/EBITDA), but it could be justified, as the business is expected to add c50bp of adj. EBITDA margin accretion in the first full year, with further accretion in the following years. We reiterate our BUY and DKK500 target price.
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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