YIT (Sell, TP: EUR1.40) - Throwing caution to the wind
In Q2, YIT issued a 3-year EUR100m bond with a coupon of 750bp+EURIBOR, in total c11% p.a. While the focus remains on cost cutting and capital release, the strategy seems to be based on recovering markets. It appears that YIT would rather borrow at higher rates to pay off lower-rate debt than to cut prices in its large inventory of unsold homes. In Q2, we expect a 52% YOY decline in adj. EBIT. We reiterate our SELL and EUR1.40 target price. The results are due at c07:00 CET on 26 July.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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.