YIT (Sell, TP: EUR1.50) - First obstacle cleared
On 21 November, YIT announced it had received a EUR140m new term loan and will redeem its 2024 March bond (EUR100m). YIT also sold its renewable energy business and will book a EUR46m non-recurring gain with its Q4 results (due at 08:00 CET on 9 February). Only EUR25m from the asset sale is fixed, with payments in 2024e (EUR10m) and 2025e (EUR15m), and much of the guided Q4 profit is a variable settlement to be paid in 2032e. We reiterate our SELL, but have raised our target price to EUR1.5 (1.2).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.