DnB Markets - NRC Group ASA (NRC) NRC Group (Buy, TP: NOK15.00) - Q4 volume but not EBIT beat

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DnB Markets

Simen Mortensen

EUR 92.13 For Business Accounts Only

NRC Group (Buy, TP: NOK15.00) - Q4 volume but not EBIT beat

Q4 was the first full quarter under new CEO Anders Gustafsson. Revenue, order intake, and order backlog beat our forecasts, but EBIT did not. The company is set to present a strategy update at a CMD in May (date to be announced), where we will look for further comments on how it intends to reach its long-term 5%+ EBIT margin target. We still see a high-risk margin recovery case, with ample upside potential if successful. We have pushed our recovery expectations back by one year and cut our 2024–2026e EPS by -28% to +3%. We reiterate our BUY, but have lowered our target price to NOK15 (16), and continue to see high risk.

27/02/2024 1 EN

Underlying

NRC Group ASA

NRC Group collects, processes and sells map data. Co. provides services to the Norwegian market, but focuses mainly on projects abroad. Co.'s geo server, BlomURBEX®, enables online distribution of Co.'s products and databases to its customers. The content of BlomURBEX® consists of Co.'s oblique aerial images, TerraItaly® database and 3D city models. Co.'s operations are divided into two main business areas: Blom Geo Engineering Services, which collects and produces geographic information; and Blom Information Services, which provides geographic information as standardized services or through applications adapted to various uses and platforms.

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NO0003679102 Oslo Bors Norway

Provider

DnB Markets

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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Analysts

Simen Mortensen

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NRC Group (Buy, TP: NOK15.00) - Q4 volume but not EBIT beat

Renovation rules now a reality

NRC Group (Buy, TP: NOK15.00) - New CEO’s plan in focus

NRC Group ASA: 2 directors

SpareBank 1 Østlandet (Hold, TP: NOK140.00) - On HOLD after strong Q1

Odfjell SE (Buy, TP: NOK225.00) - Bullish earnings outlook

Wallenius Wilhelmsen ASA Minor model adjustments

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