DNB (No_rec, TP: NOK) - ROE and fee income targets raised

At its 2024 CMD, DNB raised its ROE target from >13% to >14% for 2025–2027. Targeting a CET1 ratio of >16.7% (supervisory expectation), the bank kept its dividend policy of nominally increasing cash dividends, a >50% payout ratio and share buybacks to optimise its capital position. While it continues to target 3–4% annual lending growth and a 9% (previously 4–5%).

CMD: ROE target upped to >14%

Nordic shorts: Embracer and Nibe highlighted

Shorts update

Heads-up for CMD 19 November

Norwegian banks: Q3'24 outcome vs. expectations

DNB (No_rec, TP: NOK) - Focus on key 2027 financial targets

With 2022–2024 YTD ROEs of ~15–17%, DNB has continuously hit its >13% target set in 2022, with ample headroom. While expecting some margin pressure, we believe still-high interest rates, capital-light revenue momentum and robust asset quality bode well for continued strong earnings generation. At the CMD scheduled for 19 November, we expect the main focus to be on the new financial targets towards 2027, and see scope for its ROE target to be raised to >14%.

Turnaround takes time

Nordic banks – statistical update – Swedish bankruptcies October 2024

Europris (Hold, TP: NOK73.00) - Weak earnings trend

The Q3 results disappointed on weaker gross margins than expected and soft results from Sweden. We reiterate our HOLD, but have lowered our target price to NOK73 (75) after cutting our 2024e EPS by 4%. While we view Europris as attractively valued versus its Nordic peers, we believe it needs to reverse the negative earnings trend to restore investor confidence in its growth outlook.

Nordic banks – Statistical update - Norwegian lending September 2024

Europris (Hold, TP: NOK75.00) - Slightly soft Q3

We consider this a slightly weak report, including figures below expectations, a hiked store guidance and no significant change in outlook. We expect consensus 2024e EBITDA to come down 1% and believe a neutral to slightly negative share price reaction is warranted.

Softer numbers and outlook

EBIT 8% below due to SWE: GM under pressure.Somwhat more cautious outlook

ODDO BHF Small & MIDCAP MORNING NEWS - 10/30/2024

The outcome of the US presidential election hangs in the balance, but the momentum seems to be with Donald Trump since the beginning of October: the candidate is now in the lead in six of the seven swing states, has just overtaken Kamala Harris in the national vote while 63% of punters are tipping him to win. We recap in the present note on the European stocks to play or avoid in the event of Donald Trump's victory and have also listed European stocks with a production base in the US,...

ODDO BHF Small & MIDCAP MORNING NEWS - 30/10/2024

Le scrutin présidentiel US reste incertain, mais le momentum semble être du côté de Donald Trump depuis début octobre : le candidat est désormais en tête dans 6 des 7 swing states, vient de dépasser Kamala Harris dans le vote national et est donné gagnant à 63% chez les parieurs. Nous rappelons les valeurs européennes à privilégier ou à éviter en cas de victoire de Donald Trump, et avons également listé les valeurs européennes ayant une base de production aux US, par nature moins expo...

Nokian Renkaat Oyj : An uninspiring Q3 and visibility still too limite...

>A release that is unlikely to move the needle - Nokian Tyres has published Q3 2024 results in line on the operational front (-1% on SOI at € 30m) despite weaker sales growth (+14%) than expected (-7% vs consensus € 314m), buoyed by the better-than-expected performance in passenger car tyres (better costs on higher volumes, mostly raw materials and supply-chain related). However, under the SOI, unadjusted EBIT came in well below expectations at just € 4m (consensus at...

Nokian Renkaat Oyj : Un T3 sans grande saveur et une visibilité toujou...

>Une publication qui ne fait pas beaucoup avancer… - Nokian Tyres a publié des résultats T3 2024 en ligne sur le plan opérationnel (-1% sur le SOI à 30 M€) malgré un CA en croissance (+14%) mais plus faible qu’attendu (-7% vs consensus à 314 M€), porté par la performance meilleure que prévu dans les pneus tourisme (hausse des volumes et baisse des coûts matières). Sous le SOI, l’EBIT non ajusté est toutefois ressorti bien en deçà des attentes à seulement 4 M€ (consen...

Nokian Tyres (Hold, TP: EUR8.80) - Mixed Q3

Nokian Tyres reported a mixed Q3 as sales disappointed, while PCT’s (passenger car tyres’) clean EBIT margin was stronger on improved volumes and a continued raw-material tailwind, adjusted for inventory writedowns of delayed contract-manufactured tyres (related to the Red Sea crisis). We reiterate our HOLD but have trimmed our target price to EUR8.8 (9.0), on minor estimate changes.

Betsson (Buy, TP: SEK180.00) - Latin America the main attraction

We reiterate our BUY, and have raised our target price to SEK180 (175) after increasing our 2024–2025e EBIT by 1–3%. Latin America continued to surprise on the upside, and upcoming Brazilian regulation presents an interesting growth opportunity. We find the valuation attractive (trading at a 2025e FCF yield of 13% and P/E of 7x) in light of a 2023–2026e EBIT CAGR of 14% with a positive earnings revisions trend.

Nordic banks – Statistical update - Finnish lending September 2024

Nordic banks – Statistical update - Danish lending September 2024