Rana Gruber (Buy, TP: NOK50.00) - Hedging effect shrinking
We expect Q3 adj. EPS of NOK1.9 (results due at 07:00 CET on 10 November). Iron ore prices fell further in Q3, from ~USD120/t at end-Q2 to ~USD94/t. We estimate an average Q3 iron ore price of USD94/t per shipment, excluding freight (USD79/t including lag effects from Q2). We have cut our 2023–2024e EPS by 20–21% after a ~19% decline in the iron ore futures curve (partly offset by the ~7% NOK depreciation versus the USD) and in turn our target price to NOK50 (55). We reiterate our BUY.
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.