Estimates down on delayed margin recovery

Jm Ab (Buy, TP: SEK170.00) - Passing the trough

Q1 EBIT was 4% below our estimate and Infront consensus, while EPS fell well short in percentage terms due to a low nominal figure. KPIs did not recover as much as we expected, although JM reiterated its target to increase housing starts to 3,800 units p.a., citing macroeconomic conditions as a key factor. Given the current market outlook, we believe the company has passed the trough on EPS, as we expect starts and sales to recover in late 2025 and 2026. We reiterate our BUY and target price of ...

Margins continue to surprise negatively

Good value

Mixed upside potential, despite market recovery expectations

Pent-up demand and falling interest rates remain the backbone for newbuild recovery expectations. However, as the recovery has not yet started, property developers screen as the most attractive long-term, but visibility remains mixed. Diversified construction companies are more attractive on near-term P/Es, although many seem to be fully valued on solid share-price performance over the past six months. We maintain a neutral sector view; NCC and Skanska are our top picks.

Jm Ab (Buy, TP: SEK170.00) - BUY on the dip

JM’s share price has been volatile over the past three years, trading in waves on recovery expectations. As the Swedish residential market has yet to recover, expectations have recently fallen further, and the stock has reached old lows. However, we expect a market recovery in late-2025 and 2026, and we believe this has created an attractive entry point. KPIs (unit sales and unit starts) are our Q1 focus point, as profits are still affected by cycle lows and a trailing profit recognition. We hav...

Oncopeptides (Buy, TP: SEK2.00) - Softer-than-expected earnings

Although Q4 earnings were weaker than we expected, operating expenses were higher (partly due to borderline one-off costs; R&D-related for an EMA facility inspection). We have lowered our sales forecasts for Pepaxti in Europe. However, we believe 2025 will be important for the company, as sales should start to ramp up in Italy and Spain. We reiterate our BUY, but have reduced our target price to SEK2.0 (2.5).

Q4 report: weak upward trend

JM AB: 2 directors

Two Directors at JM AB bought 2,267 shares at between 159.388SEK and 168.400SEK. The significance rating of the trade was 52/100. 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 tw...

Recovery delayed again

Jm Ab (Hold, TP: SEK170.00) - Set to be a slow recovery

The Q4 results were a mixed bag, with revenues beating expectations, boosted by project starts, impairments resulting in an EBIT miss, and mixed KPIs. However, we believe the Q4 spike in unsold inventory (new all-time high) likely poses JM’s biggest challenge entering 2025, as it could hold back new starts by tying up capital. We reiterate our HOLD and SEK170 target price; we still expect a profit recovery to take longer than is reflected in the share price and see a better risk/reward elsewhere...

Share down on inventory and CF

Wide peer valuation range on market recovery expectations

Various waves of expectations for a recovery in newbuild markets have led to volatility in the sector, but an upwards share-price trend overall. Although we still await proof the new-volume market (both residential and commercial) is recovering, consensus is fuelled by falling rates. However, trailing profits under IFRS valuations are record-wide. We maintain a neutral sector view and stock-picking approach.

Sentiment to improve in 2025e

Jm Ab (Hold, TP: SEK170.00) - The long way back begins

While newbuild sales should continue to recover in 2025 on lower interest rates (SEK), lead times are long, and EPS is unlikely to reach pre-2022 levels in our forecast period. However, we expect Q4 housing sales and starts (KPIs) and EPS to be above consensus. Moreover, as we believe newbuild sales have passed the trough and the share price has fallen the last 6 months, we have upgraded to HOLD (SELL) and raised our target price to SEK170 (155).

Amortisation proposal not appreciated enough

Nordic shorts: Embracer and Nibe highlighted

Shorts update

Oncopeptides (Buy, TP: SEK2.50) - Germany leads Q3 sales miss

Q3 sales were roughly half the level we expected – admittedly from a small base, but still a concern for us, since the miss was led by Germany, with much slower growth than recently. However, operating expenses were also less than we forecast, leaving an operating loss of SEK61m, a fraction better than our cSEK-63m. End-Q3 cash was SEK250m, which the company said would see it to positive cash flow in 2026e. We reiterate our BUY but have cut our target price to SEK2.5 (4.5) on increased uncertain...

Q3 report: weak Germany weighs on sales

2025e: Strong cash flow & earnings growth