Wallenstam (Sell, TP: SEK33.00) - Neutral Q3
The Q3 results were neutral overall, but we were surprised Wallenstam intends to restart buybacks in this market. Asset value write-downs remain unexpectedly low at -0.3% QOQ, or c-6% versus the book-value peak in Q3 2022. In Q4e, this should change, and we expect a larger write-down of high-single digits (its seasonal pattern is only to make large revisions in Q4). We still consider the valuation demanding on cash earnings, and given the soft outlook for development gains, we reiterate our SELL and SEK33 target price.Wallenstam Byggn is a property company that builds, develops and administers properties for sustainable living and the pursuit of business in Stockholm and Gothenburg. Co. is also a producer and supplier of renewable energy through its subsidiary, Svensk NaturEnergi (NaturEnergi). Operations were run in three business areas - properties in the Gothenburg and Stockholm regions and renewable energy through NaturEnergi. The two property regions also include responsibility for leasing and management of housing and commercial premises together with planning and construction work. Operations at NaturEnergi consist of both the generation of, and trade in, renewable energy.
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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