DnB Markets - YIT Oyj (YIT) YIT (Hold, TP: EUR5.00) - Q3 to mark low season; next up, CMD

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DnB Markets

Simen Mortensen

EUR 465.37 For Business Accounts Only

YIT (Hold, TP: EUR5.00) - Q3 to mark low season; next up, CMD

The shares have fallen in Q3, leaving YIT looking more attractively valued at a discount to peers on P/E. However, we reiterate our HOLD since we see Q3 marking low season (and thus not providing any potential share-price catalysts) and do not expect any further colour on the new CEO’s plans to restore EBIT margins before the CMD (scheduled for 23 November). We have trimmed our target price to EUR5 (5.5) on our updated forecasts and peer valuations. The Q3 results are due at 08:00 EET on 29 October.

17/10/2021 21 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 (Hold, TP: EUR5.00) - Q3 to mark low season; next up, CMD

Renovation rules now a reality

YIT Oyj: 1 director

YIT (Sell, TP: EUR1.40) - A bandage, not a remedy

Medistim (Hold, TP: NOK190.00) - Sales in Americas weaken

Catena (Buy, TP: SEK515.00) - Time to put the money to work

Kesko (Hold, TP: EUR17.00) - Technical(ly) weak

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