DnB Markets - YIT Oyj (YIT) YIT (Buy, TP: EUR5.50) - Lower values reduce EPS20e

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DnB Markets

Simen Mortensen

EUR 87.46 For Business Accounts Only

YIT (Buy, TP: EUR5.50) - Lower values reduce EPS20e

YIT has cut its 2020 EBIT adjusted guidance from EUR90m–110m to EUR80m. This is mainly driven by its Tripla Mall development, which is seeing lower asset valuations due to investors’ higher yield requirements. The company is set to book a EUR16m loss in Q4. We consider this a non-recurring P&L impact, hence this writedown does not affect our 2021–2022e EPS; however, we have lowered our estimates slightly on reduced market forecasts. We reiterate our BUY based on attractive valuations, but have trimmed our target price to EUR5.5 (5.6).

04/01/2021 19 EN

Underlying

YIT Oyj

YIT provides services for the construction sector. Co. has two segments: Housing and Business Premises and Infrastructure. The Housing segment is engaged in the development and construction of housing, holiday homes and entire residential areas, with a focus on its own developments. This segment is also engaged in property maintenance in Russia. The Business Premises and Infrastructure segment is engaged in the development and construction of offices, shopping malls, public facilities, assisted living facilities and other business premises; renovation projects; construction of roads, bridges, tunnels, rail and metro stations, ports and power plants; as well as road and street maintenance.

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FI0009800643 Nasdaq Nordic Helsinki Finland

Provider

DnB Markets

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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Analysts

Simen Mortensen

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YIT (Buy, TP: EUR5.50) - Lower values reduce EPS20e

YIT (Sell, TP: EUR2.00) - 2025 guidance unchanged, we see EPS close to zero

Mixed upside potential, despite market recovery expectations

YIT (Sell, TP: EUR1.75) - No KPI or EBIT recovery in Q1e

Airthings (No_rec, TP: NOK) - Recommendation and target price withdrawn

SpareBank 1 Helgeland (Hold, TP: NOK167.00) - Softer margin, but lower costs

Smartoptics (Buy, TP: NOK27.00) - We remain optimistic

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