Reparation in Q1, resurrection from Q2

Q4: EBIT largely in line, guidance reiterated

Wihlborgs (Hold, TP: SEK120.00) - Down on valuation and vacancies

After a long period of seeming almost immune to the softening rental market, Q4 finally revealed weakness, as the vacancy rate rose to 10.5% (8.2%). Wihlborgs’ strong outperformance versus office peers has made it Europe’s most expensive office stock, trading at a 17% premium to NAV (EPRA NRV). We consider the stock almost fully valued near-term and have downgraded to HOLD (BUY) and cut our target price to SEK120 (125).

Bravida (Buy, TP: SEK112.00) - Performing well; recovery in H2e

Bravida navigated the slow Nordic installation market well in Q4, with the market demand forecast turning positive for 2025–2026. We focus on the strong FCF generation and financials, attractive capital allocation, and market consolidation opportunities. With management seeing its 7% EBITA margin target as realistic for 2026 (our estimate 6.6%), the risk/reward looks attractive to us, and we reiterate our BUY and SEK112 target price.

Novonesis (Buy, TP: DKK500.00) - Strategic acquisition

We view the proposed acquisition of dsm-firmenich’s stake of the Feed Enzyme Alliance as a good strategic fit, expanding Novonesis’ presence across the animal biosolutions value chain. In our view, the EUR1.5bn acquisition price is slightly too high (21.4x EV/EBITDA), but it could be justified, as the business is expected to add c50bp of adj. EBITDA margin accretion in the first full year, with further accretion in the following years. We reiterate our BUY and DKK500 target price.