Stock market week provides buy advice for Norwegian Protector, Finnish Lassila & Tikanoja and Enad Global 7 in the latest edition. The newspaper leaves the council waiting for Storebrand, Gjensidige, Tryg, Solid Försäkring and Essity.
It is turbulent in the macroeconomy, but it may turn out to be favorable for the Norwegian insurance company Protector, which has high growth and a historically good track record of showing consistency in premium income. The valuation is low and the company is well managed, Börsveckan believes and gives buying advice.
Size matters in insurance, and there Norway’s Storebrand is a dominant Nordic player in life and savings. In 2020, the company predicted that rising interest rates would make the coffers ring, and so it did.
The newspaper advises to wait for Storebrand and believes that Protector is more interesting. The Norwegian insurance company Gjensidige, like the industry, has raised the premiums, which gives a good boost to the top line this year.
Already next year, however, growth will fall back, while the damage percentage will remain high. The valuation is reasonable, Börsveckan assesses, and gives the advice to wait and see. Like other non-life insurance companies, Danish Tryg has experienced pressure on profitability despite rising capital income.
Here, however, currency headwinds are haunting, and if it grows, things look better. The newspaper chooses to wait with the share.
Solid Försäkring has an interesting niche with product-related insurances and a Nordic footprint. But households are weak now, which means a sluggish market for Solid.
Börsvekkan believes that the valuation is reasonable and gives the advice to wait. The result goes in the right direction for the hygiene and health company Essity, but at the same time volumes are decreasing.
Partly from own initiative but also through competition from low-cost players. The newspaper considers that the valuation is reasonable and chooses to wait with the share.
Finnish Lassila & Tikanoja basically has a stable business model and long service agreements that provide good profit visibility. If cost inflation slows during 2024, the share is valued low.
All in all, Börssvekkan lands in a 12-month buy recommendation. During last week, enormous price movements were noted in the gambling company Enad Global 7, which first fell 20 percent after a related party transaction, but where the share then rose over 20 percent after a positive capital market day. The stock is still undervalued, says the newspaper, which maintains its buy recommendation from May.