Rusta (Hold, TP: SEK80.00) - A solid run, time to pause
We are cautious ahead of the Q4 report as we expect a likely weak ending to the quarter, reflecting the unfavourable weather in April and TietoEvry-related one-off costs denting its earnings growth YOY. Although we continue to like Rusta’s long-term equity story and believe the stock should trade at a premium to the wider Nordic broad-variety space (a c44–33% premium on its 2025–2026e P/E), we find it fairly valued following its c80% share price rally since the October IPO. Thus, we have downgraded to HOLD (BUY) and cut our target price to SEK80 (83) mainly due to lower 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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