Rana Gruber (Buy, TP: NOK75.00) - Benefiting from strong steel market
We expect Rana Gruber to report Q1 EPS of NOK3.0 (results due at 07:00 CET on 12 May). The iron ore price soared from an already-high ~USD120/t to a peak of ~USD160/t. We calculate an average iron ore price per shipment of USD154/t excluding shipping costs (or USD176/t including a lag effect from Q4). We have raised our target price to NOK75 (70) on an ~8% uptick in the long end of the iron ore futures curve and recent 6% NOK depreciation, and continue to find the stock attractive at a 2022e EV/EBITDA of 2.0x. 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.
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