Coor Service Management (Buy, TP: SEK59.00) - 2024 renewals already de...

Coor reported a solid Q1, in line with expectations, and we have only tweaked our forecasts following the results. A strong contract extension trend has derisked 2024, with contract volumes YTD already matching the full year 2023 delivery, suggesting a more stable base for growth and efficiency improvements. We continue to like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support. We reiterate our BUY and have raised our target price to SEK59 (57....

Coor Service Management (Buy, TP: SEK57.50) - Reset DPS allows for fut...

We believe Coor improved in Q4, well-offsetting the lost Ericsson contract, with its model still showing strong FCF. We have only tweaked our 2024–2026e EPS. We continue to like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support, with the reset 2023 DPS of SEK3.00 (7.2% yield) allowing for de-gearing towards 2x net debt/EBITDA and a 2024–2026e DPS growth scenario. We reiterate our BUY and have raised our target price to SEK57.5 (56).

Coor Service Management Holding AB: 3 directors

Three Directors at Coor Service Management Holding AB bought 8,721 shares at between 35.580SEK and 38.500SEK. The significance rating of the trade was 51/100. 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...

Coor Service Management (Buy, TP: SEK56.00) - Instituting action progr...

Q3 was weak, with continued profit margin pressure, but Coor is initiating an action programme for a quicker trend reversal. We have cut our 2023–2025e EPS by 12–7%, with the ambition to normalise gearing towards 2x net debt/EBITDA also suggesting a lower dividend payout than our previous expectation. We still see strong yield support and reiterate our BUY, but have cut our target price to SEK56 (75) on lower multiples assumptions.

Coor Service Management (Buy, TP: SEK75.00) - OK Q2 without that littl...

Q2 broadly matched Q2 expectations, and we have only tweaked our underlying forecasts. The lost Ericsson contract increases pressure on management to re-establish Coor’s growth credentials, with the company still seeing a “strong” new contract pipeline and solid variable volumes. Meantime, we still see headroom for Coor to maintain high dividends given its FCF generation. We reiterate our BUY but have lowered our target price to SEK75 (77).

Northern Lights

Coor Service Management (Buy, TP: SEK77.00) - Down but not out after E...

Coor announced the loss of its oldest client, Ericsson, which chose to consolidate its IFM volumes with one global supplier. Thus, we have cut our 2024–2025e EPS by 9–10%, but we still see headroom for Coor to maintain its high dividend payout given its strong FCF generation lending downside support. We reiterate our BUY but have cut our target price to SEK77 (100), with the company still suggesting a good pipeline of contracts to offset the loss.

Coor Service Management (Buy, TP: SEK100.00) - Stronger new contract p...

Coor reported a solid Q1, in line with expectations, and we have only tweaked our forecasts following the results. The company now sees a ‘strong’ new contract pipeline again (previously only ‘solid’), and still-recovering variable volumes suggest a limited recessionary effect. We like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support. We reiterate our BUY and SEK100 target price.

Northern Lights

Coor Service Management (Buy, TP: SEK100.00) - Yield case reinforced

We believe Coor’s improved Q4 indicated that Q3 was a hiccup, with its model still showing strong FCF- generation capacity. Positive underlying trends in Norway and Denmark are adding stability, and we have slightly raised our EPS forecasts for 2023-2025e post results. We like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support, reflected in its maintained DPS of SEK4.80 (7.1% yield). We reiterate our BUY and SEK100 target price.

Northern Lights

Coor Service Management (Buy, TP: SEK100.00) - Q3 normalisation weakne...

Coor’s strong track record took a hit in Q3, with a much weaker profit margin than expected due to post-pandemic normalisation and the phasing of contracts in its weakest quarter seasonally. We have cut our 2022–2024e FCF generation by 9–5% but still see ample financial resources to maintain a high dividend distribution (2022e dividend yield 7.3%) and continue to act on potential acquisition opportunities. We reiterate our BUY but have cut our target price to SEK100 (110).

Nothern Ligths

Coor Service Management (Buy, TP: SEK110.00) - Normalisation quarter

Coor reported a solid Q2 in line with our expectations, with the quarter bringing a normalisation after the pandemic. We see a solid organic growth outlook, driven by new contracts and variable volumes, and have only tweaked our forecasts post-Q2. We like its FCF profile, low operating risk, Nordic exposure, scope for value-enhancing acquisitions, and strong yield support. We reiterate our BUY and SEK110 target price.

Northern Lights

Coor Service Management (Buy, TP: SEK110.00) - Solid execution

Coor reported a solid beat in Q1, driven by accelerating organic growth, profit margin expansion, and FCF generation. We see a strengthening organic growth outlook driven by variable volumes and new contracts and have raised our 2022–2024e EPS by 1–4%. We like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support. We reiterate our BUY and have raised our target price to SEK110 (100).

Coor Service Management (Buy, TP: SEK100.00) - Organic growth reaccele...

Coor’s operating model changed modes in Q4 from profit margin expansion to accelerating growth, still proving its abilities in FCF generation. We see a strengthening organic growth outlook driven by variable volumes and new contracts, and have raised our 2022–2024e EPS by 3–5%. We like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support, as seen in the raised DPS to SEK4.80 (5.9% yield). We reiterate our BUY and SEK100 target price.

Coor Service Management (Buy, TP: SEK100.00) - Value-accretive acquisi...

Coor’s operating model proved its strength again in Q3, with organic growth and further efficiency improvements. Given a still-healthy organic growth outlook driven by variable volumes and new contracts, and adding another value-accretive acquisition (the third in 2021), we have raised our 2022–2023e EPS by 4–6%. We like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support. We reiterate our BUY and have lifted our target price to SEK100 (89).

Coor Service Management (Buy, TP: SEK89.00) - Continued solid executio...

Coor’s operating model proved its strength again in Q2, with further cost and efficiency improvements also as volumes recovered, leaving adj. EBITA 10% above our forecast. We see a still-healthy organic growth outlook, driven by variable volumes and new contracts, and have raised our 2021–2023e EPS by 2–3%. We still like its FCF profile, low operating risk, scope for value-enhancing acquisitions, and strong yield support. We reiterate our BUY and have upped our target price to SEK89 (85).

Coor Service Management (Buy, TP: SEK85.00) - Impressive pandemic trac...

Coor’s Q1 was solid, with profit margin expansion and strong FCF further strengthening its financial muscle. Coor sees the new contract pipeline as very strong, and we expect a return to healthy organic growth driven by variable volumes and new contracts in 2022–2023e. We have raised our 2021–2023e EPS by 1–3%. We still like Coor’s FCF profile, low operational risk, scope for value-enhancing acquisitions, and strong yield support. We reiterate our BUY and SEK85 target price.