Rana Gruber (Buy, TP: NOK95.00) - Iron ore still around USD200/t
We forecast Q2 EPS of NOK4.3 (and a DPS of NOK3.1; results due at 07:00 CET on 26 August), based on an average iron ore price of USD195/t, despite Rana Gruber hedging around a third of its volumes at USD132/t and a 2-week annual maintenance stoppage. We have cut our 2022–2023e EPS by 1–19%, reflecting a negative shift in the iron ore futures curve, only partly offset by a depreciating NOK. We have also cut our target price to NOK95 (110); however, we reiterate our BUY, as we continue to believe that Rana Gruber offers among the best risk/reward profiles to exposure to a possible continuation of the high raw material prices we are currently witnessing
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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