Veidekke (Buy, TP: NOK100.00) - Underlying beat
While the first quarter is generally low season, the numerous one-offs and accounting changes over-shadowed the beats in Construction and Industry, the company’s two continuing operations. There was no update on the sale (or IPO) of Property Development (PD), but Veidekke stated work is continuing. While the Q1 one-offs have reduced our 2020e EPS by 20.7%, our underlying 2021 forecasts are broadly unchanged, hence 2021e EPS is down only 2.5%. We reiterate our BUY and NOK100 target price.Veidekke is a Scandinavian construction and property development company. Co.'s segments are grouped according to activity. The construction segment comprises mainly the construction of buildings and infrastructure. The property segment comprises the development of sites, property development and the sale of property (primarily residential). The industry segment comprises the production of aggregates (crushed stone and gravel) and asphalt, the laying of asphalt and road maintenance.
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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