Wallenstam (Sell, TP: SEK62.00) - NOI and net debt growth
Wallenstam’s Q1 beat our forecasts and Inquiry Financial consensus on profits from rental operations by 8%, but debt also increased more than expected at 19% YOY. Given the low-yield returns on rental apartments, we see potential downside risk for the NAV support in the share as interest rates are set to rise internationally. We have raised our target price to SEK62 (55) to reflect our increased estimates due to the Q1 beat and updated funding forecasts, but we repeat SELL.
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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