Veoneer (Buy, TP: SEK240.00) - Reassuring on 2020 inflection
Despite weak automotive markets, we reiterate our BUY recommendation but have cut our target price to SEK240 (260) as 1) we see a re-rating opportunity, with 2020e being a transformational customer launch year for Veoneer’s sensor offering; 2) with improved cost control and less cash burn, we do not expect consensus to go much lower; and 3) as we come closer to the organic sales growth inflection point, we believe investors’ focus could shift towards the long-term ~20% sales CAGR opportunity.
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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