Some early signs of improvement

Another messy report - ETM writedown of NOK 30m

Wallenius Wilhelmsen ASA (Buy, TP: NOK123.00) - Start of something good

The inaugural H2 extraordinary dividend marks a new beginning for a company that has spent recent years shedding debt and improving its balance sheet. We view this move positively, and believe it is just the beginning. Our forecasts suggest cNOK90/share could be distributed to shareholders by end-2027. We reiterate our BUY, but have cut our target price to NOK123 (125).

Sparebanken Øst (Hold, TP: NOK74.00) - Solid distribution prospects

Helped by strong fees, modest YOY cost inflation and robust asset quality, Q4 ROE was 9.5%, despite a QOQ NII downtick and negative trading income. The board proposed a 2024 DPS of NOK6.4 (~94% payout ratio and 8.0% yield), with its strong capital position and pending tailwinds from the new standard method boding well for continued generous distributions. However, with the stock trading at a dividend-adjusted 2026e P/E of ~12.8x, we find the valuation fair. We have raised our target price to NOK74 (72) and have downgraded to HOLD (BUY).

Storytel (Hold, TP: SEK96.00) - A story on hold

The Q4 results were strong across the board, and a solid gross margin again largely explained the recent profit step change; however, we believe there are few low-hanging fruit left. While we forecast 33% YOY growth in EPS in 2025 and the valuation remains undemanding, we see little likelihood of meaningful consensus revisions providing a catalyst other than multiples expansion, implying a modest risk/return. Storytel plans to unveil new medium-term targets in Q2; we believe they could be conservative, setting it up to overdeliver. We have raised our target price to SEK96 (81); however, given ...