Scatec (Hold, TP: NOK72.00) - Awaiting deleveraging
We expect El Niño to continue to hamper power production in the Philippines, and estimate proportionate Q1 EBITDA of NOK619m, 3% below consensus (results due at 07:00 CET on 30 April). With still-high leverage (2024e NIBD/EBITDA of 6x), we await news on the plan for asset sales, which we believe could spark excitement in the capital markets. However, we reiterate our HOLD and NOK72 target price, as we see too-low cash flow generation to justify a premium to our SOTP.
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