Rana Gruber (Buy, TP: NOK65.00) - Q1 in line
Q1 adjusted EPS of NOK3.0 was in line with our estimate, reflecting a solid quarter with iron ore prices at favourable levels. Reported EPS was NOK0.53, including a negative hedging effect of NOK229m from Q4 2021 to Q1 2022. We have made no estimate changes based on the Q1 report but have reduced our 2022–2023e EPS by 36–20% on an 8–9% drop in iron ore futures for 2022–2023e; consequently, we have cut our target price to NOK65 (75). We still find the stock attractively valued at a 2022e EV/EBITDA of 2.3x and 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.
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