Q1 first take: negative data point

Renewable Weekly – 29 April 2024

This week, we summarise our Q1 previews for the sector.

Heads-up for report 2 May

Sinch (Buy, TP: SEK52.00) - New reporting structure implemented

With a new reporting structure, focus will be on headline numbers (the Q1 report is due at 07:30 CET on 7 May). We forecast 6% organic gross profit growth YOY, and we believe this is about in line with consensus. We reiterate our BUY and SEK52 target price.

Truecaller (Buy, TP: SEK46.00) - Facing easy comparables in Q1

We believe our Q1 revenue assumptions could prove conservative (results due at 07:30 CET on 7 May), but we are still 3% above consensus on sales and 5% above on EBITDA. We reiterate our BUY and have raised our target price to SEK46 (40) on higher peer multiples.

Safe Bulkers Minor model adjustments

We have updated our estimates, owing to the Q1 report and its updated contract backlog at healthy rates providing visibility on cash flows for the coming quarters. The market is still pricing Safe Bulkers at c50% of NAV, which screens at a noticeable discount to peers’ average P/NAV of ~0.8x. This, along with its contract portfolio, continues to provide relatively attractive exposure to the dry bulk segment, despite potential downside risk to demand on fundamental drivers in China (importer of ~50% of all volumes). We do not consider these changes to be material, and we have not changed our BU...