Rusta (Buy, TP: SEK88.00) - Attractive entry point to solid long-term equity story
We are cautious ahead of Rusta’s Q1 2024/25 report, as we expect a strong start to the quarter to be offset by a weaker June, and still-low sales of high-ticket items to hamper the near-term sales trend. However, with the share price down c26% since its peak in June, along with limited consensus changes in the period, we find the risk/reward attractive, with the stock trading at a 2024e P/E of c15x, supported by a 2024–2027e adj. EPS CAGR of c24%. We have upgraded to BUY (HOLD), but have cut our target price to SEK88 (90) on our trimmed estimates.
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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