NRC Group (Buy, TP: NOK90.00) - More of the good stuff
This morning, NRC announced it had agreed to acquire VR Track for EUR225m on a debt-free basis at a solid, value-adding EV/EBITDA of 8x. Historical margins, ROE and operations match NRC’s current operations in Norway and Sweden, and VR Track is also set to give NRC a market-leading position in Finland. We have raised our 2019e EPS by 30.7% and 2020e EPS by 26.1%, adjusting for the deal details and 9.8m new shares. We have upgraded NRC to BUY (HOLD) and raised our target price to NOK90 (75), but estimate that NIBD has also increased by cNOK1.4bn.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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.