ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 14/05/2024

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ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/14/2024

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GN Store Nord : Positive momentum to continue

>GN Store Nord – One company to create more synergies - The capital market day of GN Store Nord focused on unfolding the value of its divisions by rising synergies through the transformation into one company. The key trends supporting the company are health awareness, hybrid work normalisation, gaming becoming mainstream, increased demand for personalised experiences and cutting-edge technology advancements. We expect that these trends will continue to support the org...

Millicom (Buy, TP: SEK310.00) - EFCF falling into place

After years of EFCF disappointing, we are even more confident that Millicom can beat its target of USD550m in 2024. On our estimates, the stock is trading at a 15% FCF yield. We reiterate our BUY and have raised our target price to SEK310 (290).

Wilh. Wilhelmsen Holding Minor model adjustments

We have updated our estimates, owing to the Q1 report and our forecast revisions for Wallenius Wilhelmsen (WAWI). We still find the WAWI investment more than covers WWI’s current share price (112% of its market cap), and believe WAWI is sufficiently overcapitalised to propose up to NOK25/share in an extraordinary dividend on top of the ‘normal’ NOK10/share we expect in Q2. If so, WWI would be set to receive an impressive dividend equal to 33% of its market cap (NOK128/share). We do not consider ...

GN Store Nord: 1 director

A director at GN Store Nord bought 7,000 shares at 201.500DKK and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly...

Skanska (Buy, TP: SEK230.00) - Q1 miss, but underlying solid

Q1 EBIT missed Infront consensus and our forecast, mainly due to a couple of one-off charges. Order intake was broadly as we expected, but sales and starts in Residential Development (RD) beat our forecasts despite Boklok still struggling with profitability. However, given market expectations of falling interest rates, we expect divestments of commercial assets to increase. We have cut our 2024e EPS by c5% on the Q1 writedowns, but raised our 2024–2026e EPS on an improved residential outlook. Wi...

In line adjusted for EO

CMD sees GN increasingly investable

GN Group (Buy, TP: DKK250.00) - Management setting the direction

We view the CMD as another step in rebuilding credibility. Key highlights included new financial aspirations for 2025–2028, insights into the One-GN strategy and deep dives into key markets, with management providing long-term market growth outlooks. We believe GN is ahead of its deleveraging plan and investor focus has shifted to the underlying business. We reiterate our BUY and DKK250 target price.

Millicom (Buy, TP: SEK290.00) - Time to reap the benefits

In 2023, Millicom implemented significant measures to take out costs of USD250m, which is set to boost EBITDA growth in 2024. If we adjust for the restructuring charges, we calculate 13% underlying EBITDA growth in 2024. We reiterate our BUY, and have raised our target price to SEK290 (275).

ALK-Abello (Buy, TP: DKK165.00) - European tablet growth shifts gear

Last night, ahead of time, ALK-Abello published its Q1 results and increased its FY top-line guidance on much stronger than expected European tablet sales growth of c28% (consensus c15%). At the same time, the company announced a cost-cutting programme in connection with its ongoing strategic review, which should help it reach its c25% EBIT margin target by 2025. We reiterate our BUY and have raised our target price to DKK165 (145).

+450bp gross margin underpins turnaround

A strong start to 2024 with 5-13% divisional profit beats. +450bp gross margin expansion validates turnaround story. BUY on deep values and turnaround, TP DKK 235 (225).

GN Group (Buy, TP: DKK250.00) - Gaining confidence in management

The Q1 results beat our expectations and consensus, with c5% organic growth and a 12.5% EBITA margin, driven by the Hearing division, while Enterprise and Gaming & Consumer saw c0% organic revenue growth in still-muted markets. The 2024 guidance was maintained for organic sales growth of 2–8%, an EBITA margin of 12–14%, and FCF of >DKK700m. At the upcoming CMD, we expect focus to be on One-GN and market outlook. We reiterate our BUY, and have raised our target price to DKK250 (230).

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 02/05/2024

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