Pandora A/S: Second Party Opinion – Sustainability-Linked Finance Fram...

We have assigned an SQS2 to Pandora A/S' sustainability-linked finance framework, which is aligned with relevant principles and demonstrates a high contribution to sustainability.

Q1 a bit noisy but transformation on track

'24e EBIT lowered by 1%. '25e-'26e raised by 1-3%. COGS efficiencies largely achieved; Focus now on SG&A. TP raised to DKK 430 (400). BUY

FLSmidth (Buy, TP: DKK440.00) - Mixed start to the year

Following a rather mixed Q1 report, our 2024–2026e clean EPS are virtually unchanged. We reiterate our BUY and have raised our target price to DKK440 (400) on a slightly raised SOTP multiple approach. We like the continued earnings quality improvement and further value-creation potential through an exit from Cement.

A weak quarter for mining with poor order execution

Trump vows to stop offshore wind development with executive order on d...

Over the weekend, former US president Donald Trump said he would issue an executive order targeting offshore wind on his first day as president if elected. A president can issue an executive order directing a study of the impact while halting permitting of new projects. While this could negatively affect US permitting and thus the growth of offshore wind in the country, all other elements for the wind farms are determined on a state level. Hence, permitted wind farms would likely see a limited e...

Positive read-across from OX2 offer

This morning, renewable energy project developer OX2 announced it has received an offer from infrastructure fund EQT at a 43.4% premium to Friday’s close. We view this as further evidence of a greater willingness to pay for renewables in the private markets than the public ones, and thus believe the bid offers a positive read-across for renewable energy companies with strong development capabilities in the Nordics/Northern Europe, such as Cloudberry and Bonheur. We also believe it could be posit...

Q1'24e: Marginally below consensus on order intake, EBIT

Estimates lowered by 1-2%. Expect guidance to be maintained. TP raised to DKK 400 (350) - BUY

Cloudberry (Hold, TP: NOK9.00) - Delivering on the factors it controls

While the turbine issues at Odal continue to create uncertainty, we see Cloudberry delivering on the factors it controls, with better realised power prices than expected, and its construction projects progressing on or ahead of schedule and on or below budget. We reiterate our HOLD and NOK9 target price, based on a 6.7% WACC, but note recent asset sales were made above this level.

Leverage too low, more dividends needed

Q2 will likely see the first special dividend. '25e EBITDA +24% vs. consensus. TP NOK 203 (200) – BUY.

Wallenius Wilhelmsen ASA Minor model adjustments

We have marginally increased our revenue estimates and revised our cost assumptions, owing to the Q1 results. With no surprises related to the Red Sea disruption or the Baltimore bridge accident, focus should shift to shareholder distributions. The revised dividend policy allows for extraordinary dividends at the board’s discretion, something we have not seen before, and the first possibility could be in connection with Q2. We calculate cNOK25/share in excess cash today, potentially on top of N...

EBITDA as expected and no big news

Adj. EBITDA of USD 439m (1% vs. ABGSC, -1% vs. cons). Shipping services and Logistics above ABGSCe, Government and Holdings belowFlat share price given no surprises in the conference call

Sparebanken Sør (Buy, TP: NOK162.00) - Robust Q1 profitability

Boosted by the tax benefit of customer dividends, strong trading income and low loan losses, SOR reported a Q1 ROE of 14.4%. Despite some pressure on deposit margins from high levels, NII rose 1.1% QOQ, helped by improved lending margins and solid corporate growth. Driven by the latter and a raised ownership share in Brage, the CET1 ratio fell by ~20bp QOQ to 16.6% (requirement including P2G reduced to 15.9%). At a 2025e P/E of ~8.6x, we find the valuation undemanding and reiterate our BUY and N...

3% organic is weak, but underlying is fine

Q1: '24 low point, meagre 3% growth pushes market share lower. Demant doing well overall beyond the 3% figure. HOLD, TP 340 (350) on 3% underlying '24e EBIT cut.

Demant (Buy, TP: DKK400.00) - Better quarters should lie ahead

Q1 organic growth was a soft c3% YOY on tough comparables, reflecting growth of c4% for Hearing Aids and c7% for Diagnostics, but a weak c0% for Hearing Care due to slowing momentum in France. We expect 2024 to be back-end loaded and driven by Oticon Intent. The 2024 guidance was unchanged for key lines, including organic growth of 4–8%, EBIT of DKK4.6bn–5.0bn, and share buybacks of DKK2.0bn+. We reiterate our BUY and DKK400 target price.

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/06/2024

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ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 06/05/2024

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Demant A/S : Slower start to 2024, weaker dynamics in France, UK and C...

>Q1 review – slower organic growth leads to miss on sales forecast - Demant’s Q1 revenues of DKK 5,423m (-1.5% y-o-y,) were driven by organic growth of 3% (vs ODDO BHF 6.2%/consensus 4.7%) and were -3%-2% vs ODDO BHF/consensus. The Communication business is excluded from the operating development as the asset is booked as discontinued operation. No bottom line was reported on a quarterly basis.Hearing aids impacted by flat growth in Europe - Hearing a...

Q1 not great, but relief looks warranted

Hexagon Purus (Hold, TP: NOK7.00) - On track

The Q1 report came as a relief to the capital markets. With decent quarterly results, capacity expansion on track, and a still-supportive demand outlook, the industrial business case looks intact. That said, we note the still-high funding need. We reiterate our HOLD, but have raised our target price to NOK7 (6) on lower dilutive effects from assumed further capital raises after Friday’s share price rally. The stock continues to trade at an attractive 40–50% discount to other hydrogen equipment s...