Storskogen (Buy, TP: SEK15.00) - FCF generation still weak
Q3 was mixed in our view, with FCF generation still weak. As the focus has shifted from acquisitions to internal efficiency and deleveraging the balance sheet, we expect a slower but more controlled progress. Our forecasts reflect this and are broadly unchanged post-Q3. We still see strong value support for the stock, with 2023–2024e FCF yields of 16–17%. Thus, we reiterate our BUY but have cut our target price to SEK15 (17.5).
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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