Volvo Cars (Hold, TP: SEK44.00) - Better balanced risk/reward
The significant fall in the share price, the lower 2022 guidance and consensus cuts have made the risk/reward more balanced. We have therefore upgraded to HOLD (SELL), although we still see several risks: the share overhang in Volvo Cars and Polestar, a potential capital raise by Polestar, weakening demand, model launches and significant investments, and downside to 2025 targets. However, as we have cut 2022e EBIT ex. JVs by 15% and 2023–2024e by 3%, we have reduced our target price to SEK44 (48).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.