DnB Markets - YIT Oyj (YIT) YIT (Buy, TP: EUR5.60) - Forecasts raised ahead of Q3

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DnB Markets

Simen Mortensen

EUR 88.68 For Business Accounts Only

YIT (Buy, TP: EUR5.60) - Forecasts raised ahead of Q3

As the Covid-19 impact on the housing market has been smaller than we feared, we have raised our Housing segment forecasts. We have also increased our Infrastructure segment forecasts, moving from an expected decline to modest growth in public spending. While we see some downside risk to consensus ahead of the Q3 results (due at 08:00 CET on 30 October), given an overall attractive valuation we reiterate our BUY and have raised our target price to EUR5.6 (5.5) on our higher forecasts.

29/09/2020 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: EUR5.60) - Forecasts raised ahead of Q3

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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