Sats (Hold, TP: NOK8.00) - Time for (covenant) testing
We are above consensus ahead of the Q1 results, due at 07:00 CET on 26 April. We find it positive that SATS looks to be taking significant action to restore profitability, including raising prices, scaling back club growth and reducing overheads. However, as it has not been transparent on near-term covenants, we find it hard to quantify the financial risk. We reiterate our HOLD and NOK8 target price.
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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