DnB Markets - YIT Oyj (YIT) YIT (Buy, TP: EUR5.80) - Promising low season

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DnB Markets

Simen Mortensen

EUR 437.57 For Business Accounts Only

YIT (Buy, TP: EUR5.80) - Promising low season

Q1 EPS of EUR0.02 was broadly as we expected. Order intake was below our forecast, but house sales were above. Following the results, we have raised our house starts and Business Premises estimates. One week into the job, the new CEO gave a positive outlook, saying he will seek to build on YIT’s strengths. Without giving specifics, YIT said adj. EBIT would be “higher YOY” in 2021– we are in line with consensus in expecting strong growth. We reiterate our BUY, but have raised our target price to EUR5.8 (5.5).

02/05/2021 22 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: EUR5.80) - Promising low season

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

Seafood - Fat Trout Weekly

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