Rana Gruber (Buy, TP: NOK90.00) - Soft NOK offset soft iron ore prices
We estimate Q1 EBITDA of NOK142m for Rana Gruber in a quarter with falling iron ore prices. We have made small positive changes to our 2024–2026e EPS as a ~10% negative shift in the iron ore futures curve is more than offset by a ~10% depreciation in the NOK versus the USD. We continue to find a 2024e P/E of 7x on current spot rates attractive while we await the benefits from the company’s upgrade to Fe 65% and potential further upgrades on a longer time horizon. We reiterate our BUY and NOK90 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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