VEF (Buy, TP: SEK2.90) - Adverse valuation headwinds
Q4 saw a major NAV decline QOQ, as key asset Creditas faced FX and peer multiples headwinds, resulting in a 44% lower mark QOQ. That said, our impression is underlying operations continue to progress ell, and we are encouraged by VEF starting to execute on exits. We have lowered our target price to SEK2.9 (3.6), following the Q4 valuation reset, but reiterate our BUY as we still see scope for NAV growth and a discount re-rating from continued exits, deleveraging and potential buybacks.
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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