Sweco (Buy, TP: SEK135.00) - Expecting a solid Q3
We expect 18% YOY sales growth in Q3 on higher average fees on contracts, offsetting high cost inflation (particularly wage growth), and strong underlying demand in most regions resulting in a steady flow of new projects, supporting c8% organic growth. We forecast an EBITA margin of 7.2%, roughly flat YOY, backed by solid organic growth, albeit partly offset by low profitability in the UK due to weakening infrastructure and commercial buildings markets. We reiterate our BUY and SEK135 target price.
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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