Scandic Hotels (Buy, TP: SEK46.00) - Risk/reward turning more positive
With Scandic Hotels securing financial headroom until 2023–2024e, the risk/reward has turned more positive again and we have upgraded the stock to BUY (HOLD), seeing the company as a prime beneficiary in a post-pandemic recovery in Nordic hospitality demand given its leading footprint. We have lifted our target price to SEK46 (31), and moved our valuation base to 2023e, when we see Scandic matching its financial target of 11% EBITDA margins on a Nordic RevPAR level still 8–15% below 2019, suggesting further potential upside in an even longer scenario.
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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