+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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ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/02/2024

We are removing GALP from our ODDO BHF European Large Caps list. The stock has chalked up a performance of +31.3% since its inclusion in the list on 20 March. Our analyst is adopting today a Neutral recommendation (vs Outperform) on the stock. - ...

GN Store Nord : Strong hearing aid business, stabilisation at Enterpri...

>Q1 review – Strong beat on bottom line - GN Store Nord achieved Q1 revenues of DKK 4,303m (+2.1% y-o-y, 0%/+1% vs ODDO BHF/consensus). Q1 adj. EBITA reached DKK 538m (+218% y-o-y, margin 12.5%), which was a strong beat by 35% of our estimates and by 32% vs consensus. EPS reached DKK 1.74 (vs DKK 0.87/0.85 expected). The 2024 guidance is confirmed.GN Hearing - Excellent organic growth on new Nexia platform - GN Hearing’s Q1 revenues of DKK 1,737m (+7....

Growth and margin beat in key business'

GN Group (Buy, TP: DKK230.00) - Time to rebuild credibility

We forecast Q1 organic sales growth of 3.0% YOY (consensus 2.8%) and an EBITA margin of 9.7% (consensus 9.6%). We see Hearing as starting well, and despite still-negative growth in Enterprise, we expect unchanged 2024 guidance. The upcoming CMD offers management scope to rebuild credibility, and we expect updated long-term targets to reflect “One-GN”. We reiterate our BUY and have raised our target price to DKK230 (215).

A decent Q1 while we await the CMD

Q1 2 May with ABG +8% vs. cons. on low-visibility quarter. All days at potential new targets at CMD 7 May, little news on Q1. We stay BUYers on cheap turnaround potential.

Renovation rules now a reality

The Energy Performance of Buildings Directive (EPBD) was approved on 12 April, requiring the modernisation of existing real estate in the EU, and will soon enter the Official Journal of the EU. Member states will have two years to incorporate the provisions into their national legislation. While Q1 is Nordic construction’s low season due to winter effects, we see some downside risk to Q1e consensus and longer-term to 2024–2026e EBIT on lower development gains. We recommend a stock-picking approa...

NRC Group (Buy, TP: NOK15.00) - New CEO’s plan in focus

NRC’s Q1s tend to be its low season, due to the Nordic winter effects, and we expect a seasonal loss in EBIT (results due at c07:00 CET on 25 May). However, announced order intake has been strong, including the order termination and excluding the EUR344m light rail alliance contract in Finland. In conjunction with the Q1 results, NRC is due to host a CMD, where the new CEO will present the new group strategy. We continue to see strong upside potential on an EBIT margin recovery and reiterate our...

Ambea AB: 2 directors

Two Directors at Ambea AB sold/bought 7,635,101 shares at between 59.550SEK and 63.300SEK. The significance rating of the trade was 99/100. 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 t...

NRC Group ASA: 2 directors

A director at NRC Group ASA maiden bought 9,430 shares at 10.800NOK and the significance rating of the trade was 67/100. 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 c...

Elekta AB: 1 director

A director at Elekta AB bought 3,150 shares at 76.860SEK and the significance rating of the trade was 68/100. 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 show...

Elekta (Hold, TP: SEK82.00) - A soft quarter

Q3 earnings were softer than we and the market expected. The weak order intake stood out, while strong cash flow was the bright spot in the report. Order intake (c14% below our forecast and consensus) remains hampered by still-poor performance in APAC (mainly China). EMEA was also weak, but on very challenging comparables. Overall, the company was optimistic that Q4 would be in line with last year, bolstering the share price. We reiterate our HOLD, but have trimmed our target price to SEK82 (SEK...

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 02/29/2024

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ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 29/02/2024

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GN Store Nord : Factor in slower recovery in Enterprise, but turnaroun...

>GN Hearing with strong year ahead - On the back of the recently launched Resound Nexia hearing aid platform, we expect the market share gains to continue. The expansion of the portfolio with new ITE and BTE form factors should underscore our new expected organic growth of 9.0% for 2024 (guidance 8% to 12%). Hence, we see the company well on track to achieve its EBITA margin guidance of 18% to 20% for the core hearing aids business, which compares to our new forecast ...

NRC Group (Buy, TP: NOK15.00) - Q4 volume but not EBIT beat

Q4 was the first full quarter under new CEO Anders Gustafsson. Revenue, order intake, and order backlog beat our forecasts, but EBIT did not. The company is set to present a strategy update at a CMD in May (date to be announced), where we will look for further comments on how it intends to reach its long-term 5%+ EBIT margin target. We still see a high-risk margin recovery case, with ample upside potential if successful. We have pushed our recovery expectations back by one year and cut our 2024–...