Skanska (Hold, TP: SEK230.00) - A mixed Q3, consensus risk confirmed
Skanska’s Q3 was mixed: while the construction margin delivered on the upside, Residential Development (RD) and Commercial Development (CD) missed consensus. The results would have been a miss had it not been for a SEK85m gain from the PPP run-off portfolio in “Central & eliminations”. Skanska reiterated that the CD portfolio will have few ready-to-sell developments in 2021–2022e, yet consensus remains at peak levels. We also note the RD miss in Q3 on fewer unit sales, and we see the same risk for the 2022e consensus. Despite SOTP asset support and an appealing dividend yield, our below-consensus forecast has led us to reiterate our HOLD, with a new SEK230 (220) target price.Skanska is a project development and construction group, concentrated on selected home markets in the Nordic region, European countries and in the Americas. Co.'s business streams are: construction, which includes building and civil construction; residential development, which develops residential projects for immediate sale; commercial property development, which initiates, develops, leases and divests commercial property projects, with project development focusing on office buildings, retail and logistics properties; and infrastructure development, engaged in identifying, developing and investing in privately financed infrastructure projects, such as highways, hospitals and schools.
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.