Stillfront Group (Buy, TP: SEK35.00) - Light at the end of the tunnel
We reiterate our BUY and have raised our target price to SEK35 (33) given mixed Q4 results but signs of reduced balance sheet risk, margin upside potential, and healthy cash flow. We have fine-tuned our forecasts and expect the new ‘synergy phase’ (more focus on efficiency and capital allocation) to drive healthy FCF notwithstanding lower sales growth than in the past. We forecast a return to organic sales growth YOY for H2 and calculate a 2022–2025e adj. EBIT CAGR of 9%.
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.
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