DnB Markets - NRC Group ASA (NRC) NRC Group (Buy, TP: NOK30.00) - Guiding for higher margins

Report

DnB Markets

Simen Mortensen

EUR 90.87 For Business Accounts Only

NRC Group (Buy, TP: NOK30.00) - Guiding for higher margins

Q4 EBIT was broadly in line with the profit warning on 2 February, and the 2023 guidance was in line with our estimate and Bloomberg consensus. We have updated our forecasts for the sale of two small divisions and a slight adjustment to our view of the margin recovery path. NRC remains a margin-recovery story in our opinion, which we still see as the main potential share-price catalyst; however, given its track record, we believe the market is looking for NRC to deliver on its guidance. We reiterate our NOK30 target price and BUY, given the potential upside.

21/02/2023 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.

See profile

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.

See profile

Analysts

Simen Mortensen

Other Reports on these Companies

DnB Markets

Renovation rules now a reality

The Energy Performance of Buildings Directive (EPBD) was approved on 12 April, requiring the modernisation of existing real estate in the EU, and will soon enter the Official Journal of the EU. Member states will have two years to incorporate the provisions into their national legislation. While Q1 is Nordic construction’s low season due to winter effects, we see some downside risk to Q1e consensus and longer-term to 2024–2026e EBIT on lower development gains. We recommend a stock-picking approach and keep a neutral sector stance.

Free Trial

April 16, 2024 April 16, 2024 1 EN

DnB Markets

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

NRC’s Q1s tend to be its low season, due to the Nordic winter effects, and we expect a seasonal loss in EBIT (results due at c07:00 CET on 25 May). However, announced order intake has been strong, including the order termination and excluding the EUR344m light rail alliance contract in Finland. In conjunction with the Q1 results, NRC is due to host a CMD, where the new CEO will present the new group strategy. We continue to see strong upside potential on an EBIT margin recovery and reiterate our BUY and NOK15 target price.

Free Trial

April 11, 2024 April 11, 2024 1 EN

SmartInsider

NRC Group ASA: 2 directors

A director at NRC Group ASA maiden bought 9,430 shares at 10.800NOK and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names o...

Free Trial

March 7, 2024 March 7, 2024 1 EN

Metsa Board (Buy, TP: EUR11.00) - Scope for a revaluation

With ample evidence of improved demand for paper board and a better price outlook for market pulp, we believe earnings headwind has now turned into a tailwind. We also expect earnings to be driven by incremental volumes after capacity expansions at existing mills. After ambitious investments over the past three years, the company’s paper board capacity is up c25%, while its net long pulp position has increased by close to 30%. We have upgraded to BUY (HOLD) and raised our target price to EUR11 (7.7) on our increased estimates including higher dividends.

Free Trial

19h / 24m 19h / 24m 1 EN

Patrik Ling

Patrik Ling

BioArctic (Buy, TP: SEK350.00) - Limited news on EU approval

The Q1 report was in line with expectations, with a small beat on the operating loss. The cash position at end-Q1 was nearly SEK1bn. There was limited news on the delayed EU approval (waiting on a SAG meeting). Eisai recently guided for Leqembi sales of JPY56.5bn (year to March 2025), implying royalties to BioArctic of cSEK360m. We reiterate our BUY and SEK350 target price.

Free Trial

19h / 36m 19h / 36m 1 EN

Jonatan Andersson

Jonatan Andersson

Surgical Science (Buy, TP: SEK230.00) - Weaker than expected start to 2024

The weak Q1 results, with sales and adj. EBIT below our estimates, were largely due to a significant slowdown in Educational products. We have marginally revised our 2024–2026e on the strong management outlook for 2024, and reiterate our BUY and SEK230 target price. We believe the weak share price reaction on the report presents an opportunity for long-term investors.

Free Trial

May 17, 2024 May 17, 2024 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

NRC Group (Buy, TP: NOK30.00) - Guiding for higher margins

Renovation rules now a reality

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

NRC Group ASA: 2 directors

Metsa Board (Buy, TP: EUR11.00) - Scope for a revaluation

BioArctic (Buy, TP: SEK350.00) - Limited news on EU approval

Surgical Science (Buy, TP: SEK230.00) - Weaker than expected start to 2024

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe