Scatec (Sell, TP: NOK81.00) - In a corner
After admitting its 2025 target of 15GW is no longer reflected in its growth ambitions, new targets look set to be launched at Scatec’s CMD next week. However, with limited liquidity available for growth beyond its backlog, we believe the company has been put in a corner, torn between further growth and not diluting existing shareholders. Either way, current shareholders should not pay for more growth than the company can generate with recycled capital, which is what we incorporate into our valuation. We reiterate our SELL and NOK81 target price.
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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