YIT (Buy, TP: EUR5.80) - Blanks filled in, upside returns
YIT hosted its annual CMD on 26 September. Although it had already on 18 September presented a review of its 2020–2022 strategy (with no changes to its financial targets or strategy), the CMD filled in many gaps, with more detailed information at a segment level than at last year’s CMD. This has improved earnings visibility in our view, which had been an issue. With the shares down in recent months, and improved visibility and upside potential, we have upgraded to BUY (HOLD), our target price remains unchanged at EUR5.80. Ahead of the Q3 results (due at 07:00 CET on Nov. 1st), we are 2% above consensus on EPS.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.
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