Scatec (Hold, TP: NOK70.00) - Consensus a tad too high
We believe a combination of weak hydrology and lower power prices in the Philippines and slightly slower construction progress will weigh on Q4 Power Production EBITDA; our forecast is 5% below Bloomberg consensus. Although expecting improving operations in the Philippines for 2024, we are 6% below consensus for the year on Power Production EBITDA and thus expect smaller reductions. We reiterate our NOK70 target price, but have upgraded to HOLD (SELL) as the stock is trading largely in line with our fundamental valuation.
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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