Heads-up for report 30 April

Scatec signs PPA with Statkraft for new 142 MW solar plant in Brazil

Scatec signs PPA with Statkraft for new 142 MW solar plant in Brazil Oslo, 24 April 2024: Scatec ASA, a leading renewable energy solutions provider, signed a 10-year power purchase agreement (PPA) with Statkraft Energia do Brasil Ltda in Brazil, for a 142 megawatt (MW) solar plant in Minas Gerais, in Brazil. The BRL-denominated PPA covers about 75% of the expected power produced, while the remainder is expected to be sold under short, medium, and long-term term contracts (PPAs). The project’s estimated equity return exceeds Scatec’s hurdle rate of 1.2x the project’s cost of equity. ...

Scatec ASA - Minutes of Annual General Meeting

Scatec ASA - Minutes of Annual General Meeting Oslo, 18 April 2024: Scatec ASA held its Annual General Meeting today at 10:00 CEST. A total of 113,063,920 shares, representing 71.15% of the share capital was represented at the General Meeting. All proposals were resolved as presented in the notice convening the General Meeting distributed on 26 March 2024 and as further set out in the minutes from the General Meeting attached hereto. For further information, please contact:Andreas Austrell, VP Investor Relations, About Scatec   Scatec is a leading renewable energy solutions provid...

Medistim (Hold, TP: NOK190.00) - Sales in Americas weaken

Revenues grew 3.5% YOY in Q1 (currency-neutral total sales grew 2.2%), below our estimate c6%. The EBIT margin of 24% was almost back to normal and in our view shows the low margin in Q4 2023 (16.4%) should be seen as a one-off. However, we remain concerned about revenue growth, especially in the Americas, after the fifth consecutive quarter of declining currency-neutral sales. Thus, while we reiterate our HOLD, we have lowered our 2024–2026e sales by c3–8% and cut our target price to NOK190 (210).

Catena (Buy, TP: SEK515.00) - Time to put the money to work

The Q1 results were solid in our view; although the vacancy rate rose, it was from a very low level, and was therefore of limited concern. We reiterate our BUY and have raised our target price to SEK515 (500). In our view, Catena has (too much) firepower following its last equity raise and we would like to see more M&A, project activity, or speedy reinvestment. Following the equity raise the stock looks highly valued on a 2025–2026e P/FFO of 21–19x, but that drops to 15–14x adjusted for earnings from our forecast recurring development gains.

Kesko (Hold, TP: EUR17.00) - Technical(ly) weak

Q1 disappointed due to Building & Technical Trade (BTT) profitability well below expectations. We continue to see a mixed case, with stable to gradually improving Grocery Trade (GT) but still-weak Building & Technical Trade. We reiterate our HOLD but have cut our target price to EUR17 (18), after lowering our 2024–2026e clean EBIT and DPS by c4%.