Scandic Hotels (Buy, TP: SEK46.00) - Reopening driving occupancy
Q1 was weak, as expected. However, high cash burn is guided to fall as occupancy recovers, setting the scene for positive cash flow again in Q3e. We consider Scandic Hotels a prime beneficiary of a post-pandemic recovery in Nordic hospitality demand given its leading footprint, with our 2023 forecasts suggesting it achieves its financial target of an 11% EBITDA margin on Nordic RevPAR still 8–15% below 2019. We see further potential in an even longer-term scenario. We reiterate our BUY and SEK46 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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