Scatec (Hold, TP: NOK62.00) - A disciplined message
We have a positive view of Scatec’s disciplined message to cease dividends and align its growth targets to its liquidity situation (annual equity investments down ~65% with a new growth target). Hence, we now estimate growth should be fully funded. Yet the company’s capital structure remains sub-optimal, with NOK8.4bn of debt at the corporate level on top of SPV debt, which significantly lowers cash flow generation at current interest rates. Hence, we consider its intention to make additional debt repayments using proceeds from asset sales a step in the right direction. We have upgraded to HOLD (SELL) and raised our target price to NOK62 (55).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.