SBB Norden (Sell, TP: SEK31.00) - Ambition – and valuation– remain high
SBB Norden hosted a CMD on 10 September. The company now aims for a SEK300bn asset base by 2026e and raised its target for income from property development (projects) to SEK2.0bn–2.5bn p.a. SBB also intends to propose a DPS of SEK1.32 (12 instalments p.a.) for 2022e. With an EPRA NTA (NAV) value of 23% of its balance sheet as of Q2, asset write-ups (building equity) or issuance of new equity (or hybrid bonds) seem likely to be a key factor in reaching a SEK300bn portfolio. We have rolled forward our valuation and updated our NAV forecasts, and have raised our target price to SEK31 (26). We reiterate our SELL.
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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