Volvo Cars (Hold, TP: SEK47.00) - No improvement in costs for Q4e
We believe consensus is too optimistic on the margin improvement for Q4 and we are 11% below on EBIT before JVs. We reiterate our HOLD but have raised our target price to SEK47 (44). The stock lacks appeal in our view despite low multiples given the share overhang in Volvo Cars and Polestar, a potential capital raise by Polestar, weakening demand, significant likely investment needs and 2025 targets above our estimates.
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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