Scatec (Sell, TP: NOK80.00) - Tailwinds already priced in
Scatec’s equity story looks brighter, in our view, with interest rate cuts widely expected and execution of its asset-rotation plan to free up capital for growth and corporate debt repayments. We have raised our target price to NOK80 (72) on a lower cost of equity and greater growth contribution. However, we reiterate our SELL, as the tailwinds from lower interest rates and asset sales look well priced into the stock, trading at a ~11% cost of equity and a 2024e proportionate EV/EBITDA of 9.5x.
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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