Volvo Cars (Sell, TP: SEK62.00) - Our data shows falling demand
We have downgraded Volvo Cars to SELL (HOLD) as our data tracker indicates falling demand. In addition, we see a high risk with the 22 June Gores Guggenheim shareholder meeting, as more than 38% of the public shareholders must vote in favour of the proposed merger with Polestar at a valuation of USD20bn. We believe Polestar’s fair market value could be 30–40% lower. We have cut our EBIT before JVs by c5% on average for the forecast period and cut our target price to SEK62 (74).
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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