Skanska (Hold, TP: SEK185.00) - EPS growth set to stall
Weakening Norwegian and Swedish housing markets and few announced orders in Q4 have prompted us to cut our 2018–2020e EBIT for Construction and RD. That said, we have raised our 2017e EPS on asset sales (in ID and CD). The lowered US corporate tax has lifted our 2018–2020e EPS despite a cut to our Nordic forecasts. We are well above Q4 consensus (results due at 07:30 CET on 1 February), having updated for announced sales. We reiterate our HOLD recommendation but have trimmed our target price to SEK185 (187).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.