NRC Group (Hold, TP: NOK17.00) - Still a waiting game
The Q1 seasonal loss was line with our forecasts and consensus, but the order backlog was weaker than we expected. NRC remains a margin-recovery case in our view; however, management reiterated its 2021 guidance for an EBITA margin of 1.75–2.5%, still a long way from the 2024e target of a 7% EBITA margin. We do not see any near-term share price catalysts given a sharp drop in the order book – and therefore no evidence of a margin recovery – in Q1, and reiterate our HOLD, but have trimmed our target price to NOK17 (18) on our updated forecasts and peer group multiples.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.
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