Otovo (Buy, TP: NOK43.00) - Awaiting lease portfolio refinancing
We welcome the reported step-up in subscriptions sold and have raised our leasing share forecast following the Q3 report. However, an uptick in subscriptions makes us wonder whether additional equity might be needed to finance the substantial growth. We believe that a favourable outcome of the upcoming refinancing would leave the leasing business fully funded and unlock upside potential, but would expect additional equity to be required over the next years if the LTV covenant is not relaxed from the current level. We reiterate our BUY and NOK43 target price.
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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