Storebrand (Buy, TP: NOK100.00) - Set for capital release and earnings growth
We have raised our target price to NOK100 (82) and reiterate our BUY, as we continue to see multiple years of sustained growth across Storebrand’s capital-light businesses, which we value at NOK76/share. Recent tailwinds from rising interest rates now leave scope for extraordinary buybacks next year in our view, and we have raised our 2022e capital distributions by 41%. We have also raised our 2021–2022e adj. EPS by 7–10%. For 2023, we forecast adj. EPS of NOK7.3 and a combined capital distribution of NOK6.7/share.Storebrand ASA is the parent company in a financial group. Co. is a provider of pension savings. Co. provides range of products within life insurance, property and casualty insurance, asset management and banking, to companies, public sector entities and private individuals. Co.'s corporate organization includes the business areas of Savings, which comprises of non-guaranteed Defined Contribution in Norway and Sweden, Asset Management and Bank products to the retail market; Insurance, which includes Co.'s risk products; Guaranteed Pensions, which includes long-term pension savings products that give customers a guaranteed rate of return; and Other.
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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