Volvo Cars (Hold, TP: SEK53.00) - Turning point for volume, not margins
After a period with supply-chain issues, Q4 was a clear turning point for volumes. However, we are sceptical as to how quickly the gross margin can recover and have lowered our 2023e EBIT before JVs by 11%, despite the guidance for solid double-digit growth in retail sales being better than we expected. Management was optimistic about lower battery costs, further improved supply chains and price rises materialising in EMEA this year. We still see plenty of risks, but believe they are reflected in the valuation. We reiterate our HOLD, but we have raised our target price to SEK53 (47) based on peer multiples.
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.