Scatec (Buy, TP: NOK86.00) - Progressing as planned
We forecast Q4 proportionate EBITDA of NOK1,330m, including NOK383m from gains related to phase two of the farm-down of three South African solar plants, and are 4% below consensus. In our view, Scatec continues to achieve its growth targets and asset rotation programme. We estimate that announced farm-down proceeds would reduce NIBD/EBITDA to ~4.6x by end-2026 on current investment plans, and thus still believe further asset sales (in line with company plans) are needed for deleveraging. We reiterate our NOK86 target price, but have upgraded to BUY (HOLD) as the stock is now trading at a 12% discount to our SOTP.
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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