Storskogen (Buy, TP: SEK10.70) - Continued deleveraging focus
Q3 matched headline expectations but was weaker below, with higher non-cash items and financial costs. We have made only minor changes to our EBITA estimates after the results, but escalating financial costs and high gearing have translated into 3–8% cuts to our 2023–2025e EPS. With focus remaining on deleveraging and internal efficiency, we still expect a less eventful Q4 2023–H1 2024. We continue to see strong value support (2023–2025e FCF yields of 20–23%) and reiterate our BUY, but have lowered our target price to SEK10.7 (11.3).
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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