SSAB (Buy, TP: SEK105.00) - Transformational story is unfolding
Due to negative effects from the ongoing strikes in Finland and a more cautious view on prices for the America’s division, we have cut our EBITDA for 2024e by c9%. More importantly, we have also revised our long-term forecast following SSAB’s cSEK50bn capex plan to turn the Lulea steel mill into a new fossil-free mini-mill system by 2028e that we estimate will mean at least SEK5bn structurally higher annual EBITDA. Reflecting the estimate cuts and heavier capex than previously assumed, we have cut our target price to SEK105 (130) but reiterate our BUY.SSAB is a supplier of high strength steels with products comprising various qualities and dimensions within wear steels and structural steels. Co.'s solutions also include services, from concept to finished delivery. SSAB Wear Services also provides advice, repairs, and sales of spare parts to the aftermarket. The business is organized into three business areas; SSAB Americas, SSAB EMEA and SSAB APAC as well as the subsidiary, Tibnor, which is a steel distributor in the Nordic region. SSAB EMEA consist of Europe, the Middle East and Africa; SSAB Americas of North and Latin America; SSAB APAC of Asia, Australia and New Zealand and Tibnor of steel and metal distribution in northern Europe.
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.