Scatec (Sell, TP: NOK86.00) - Expected growth priced too high
Although Scatec’s share price has declined by 70%+ since its peak, we calculate that its implied equity value of growth has only fallen by 28%. We consider this to be too little as project profitability has contracted due to increased competition and inflation. The implied value of growth has barely changed at the EV level, with a higher capex forecast offsetting the lower equity value of growth. With less liquidity available for future projects, we have lowered our growth forecast. We have cut our target price to NOK86 (96) and downgraded to SELL.
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.