A higher gear ahead

Going higher

Infrastructure seminar confirms optimism

Quality comes at a price - up to BUY

Strong quarter

Consensus seems high into Q2

Norconsult acquires Aas-Jakobsen Group

Lower billing rate momentum

Billing ratio muted

Norconsult (Hold, TP: NOK48.00) - Q1e EPS risk, but raised 2027e

We see the same risk for Norconsult as its peer Multiconsult; while Q1 officially had 63 working days, we expect revenue output to reflect c61 days, given the two widely taken ‘bridge days’ at the start of January. This, coupled with Norconsult’s more conservative bonus payout schedule (hit Q1 2024 results) point to downside risk of 16% to consensus Q1e, in our view. However, based on updated guidance for the number of workdays in 2027, we have raised our 2027e EPS by c8%, although we reiterate ...

A tad softer

Architects and Building could lift billing ratio

Norconsult (Hold, TP: NOK48.00) - Q4 miss on sum of small deviations

Norconsult proposed a DPS of NOK1.70 for 2024, up from the NOK1.20 for 2023 and above our estimate and consensus. However, the sum of several small deviations led to a slight miss in the underlying Q4 results. After tweaking our 2025–2026e EPS, we reiterate our HOLD and NOK48 target price.

Q4: EBITA adj. -6% below expectations

Q4e: Improving market outlook

Down to HOLD after strong share performance

Norconsult (Hold, TP: NOK48.00) - Taking a neutral stance

We have raised our target price to NOK48 (43). However, with our Q4 2024e and 2025e EPS broadly in line with Bloomberg consensus, and the stock looking fairly valued on 2025–2026e P/E, as well as trading at a premium to less liquid peers but at a discount to Sweco, we have downgraded Norconsult to HOLD (BUY). The Q4 results are due at 07:00 CET on 18 February.

Back to 10% run-rate margin

Norconsult (Buy, TP: NOK43.00) - Cost-driven low-season beat

While Q3s tend to be low season for Norconsult, the company beat our EBITA forecast and consensus on lower-than-expected costs. The billing ratio was below our forecast as new hires led to an FTE level 1.4% above our estimate, but costs were lower than we expected despite this. Overall, we have made minor forecast changes, but higher peer valuations have led us to raise our target price to NOK43 (42). We reiterate our BUY.

Better than expected Q3