Veoneer (Buy, TP: SEK510.00) - Key assets intact
The Q3 results contained three negatives, which offset the one positive that the Active Safety growth story is intact (c80% of our SOTP value): 1) 2020 sales guidance cut; 2) higher than expected cash burn owing to increased RD&E investments to delay EBIT breakeven target; and 3) increased uncertainty if cash position of USD1bn at spin-off is enough for cash flow breakeven. We reiterate our BUY recommendation and have lowered our target price to SEK510 (550).
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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