SBB Norden (Sell, TP: SEK15.50) - Consensus and valuation look high
One-offs left Q2 EBIT 4% below our estimate. The earnings capacity guidance indicated run-rate EBIT of SEK3.1bn in Q2, down c12% YTD, in line with our below-consensus forecast. We have made only limited estimate changes for the results, but have raised our forecasts for the Laeringsverkstedet deal. The stock continues to look overvalued to us versus NAV and peers, and we see material downside risk to consensus. We reiterate our SELL but have raised our target price to SEK15.5 (15) following the Laeringsverkstedet announcement.
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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