Peab (Hold, TP: SEK85.00) - Mixed Q4, but boost from one-offs
Peab reported stronger-than-expected Q4 results on transaction gains in Property Development (PD) and one-offs in Industry (extra government funds in Finland). The underlying market recovered as we expected, with leading KPIs such group order intake and residential unit sales slightly above our forecasts. We have made minor changes to our 2025–2026e EPS, but believe consensus is still reflecting a too-bullish EBIT margin recovery. We reiterate our HOLD, but have raised our target price to SEK85 (80) on updated forecasts and peer valuations.Peab AB is a construction and civil engineering company. Co. has four business areas: Construction, which performs contract work for external customers and the other units and includes construction of homes and premises to renovation and construction maintenance; Civil Engineering, which engages in the local civil engineering market and in infrastructure projects such as bridges, roads and railways and the management and maintenance of streets and roads; Industry, which delivers asphalt, cement, foundations, electricity, transportation, machine and crane services and prefab to external customers and the other units; and Project Development, which develops housing and commercial property.
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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