Strong Q2 but still a market risk

Q2 beat our forecasts and consensus, with a NOK265m plot sale and a strong underlying EBIT margin. The company expects prices and volumes to recover within a few quarters, and is positioning its developments accordingly, but we believe it is being overly optimistic. Given the time lag in earnings, the stock screens attractively on 2017–2019e multiples, but we fear new sales in the slowing market Norwegian housing market will influence the share price, in our view. We reiterate our HOLD recomme...