Nordisk Bergteknik, active in rock handling and foundations, may see its target price lowered to SEK 40 (45) by Kepler Cheuvreux. The buy recommendation is repeated.
On the stock exchange, the share has traded down by 1.6 percent to a price of SEK 25.65. “We will reduce the profit per share during the period 2023-2025 by 11-12 percent with an unchanged dividend per share. We assume a lower organic sales growth in the second half of the year, down from 4 percent to 2 percent and with lower ebit margins compared to before.
However, we continue to see a positive average annual growth rate for earnings per share in the years 2022-2025 of 4 percent,” writes Kepler in an analysis. The analysis shows that Kepler sees Nordisk Bergteknik’s exposure to the end market as “less volatile” than several of its competitors.
Housing is estimated to account for 10 percent of sales. “We see short-term pressure on ebit margins but the forecast for the ebit margin in Q3 measured on a 12-month rolling basis of 6.3 percent is comparable to the target over the entire business cycle of 7 percent.”.