Recipharm (Hold, TP: SEK90.00) - A challenging quarter expected
With a disappointing Q3 and Recipharm announcing that it may not meet its FY 2017 guidance, we anticipate another lacklustre quarter. We expect the Swedish operational restructuring to significantly hit reported profit in Q4, and have factored in one-off costs of cSEK75m. At the same time, closing down several unprofitable product lines might take time, and some effects could carry over into FY 2018. We reiterate our HOLD recommendation and SEK90 target price ahead of the Q4 results due on 22 February at 07:45 CET.
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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