Volvo Cars (Hold, TP: SEK47.00) - Progress, but uncertainty remains
We are 10% above consensus on Q2e EBIT before JVs, but there are many moving parts with low visibility on costs, meaning high uncertainty in our view. We expect the net effect of price versus cost to have improved slightly QOQ, supporting margins. We still see plenty of risks, but believe they are reflected in the share price. We reiterate our HOLD, but have raised our target price to SEK47 (43) on minor changes to 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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