Nolato
Nolato - Preview ahead of CMD (ABG Sundal Collier)

2019-09-12 13:31
Informational Capital Markets Day on 17 September
Focus on Medical Solutions outlook and HTP update
Expect share price neutral event with reiterated targets
Integrated and Medical Solutions growth strategies
On 17 September, Nolato will host its Capital Markets Day in Hörby, in Sweden, at one of the groups Medical Solutions facilities. Nolato will be represented by CEO Christer Wahlquist and CFO Per-Ola Holmström, as well as the heads of all three business segments - Medical, Integrated and Industrial Solutions. The previous CMD in June 2017, focused on the transformation from a traditional contract manufacturer to a global manufacturing partner. This time the company will dive deeper into the individual operating segments. We expect to receive more colour on Heated Tobacco Products (HTP), given the launch of new HTP products in H2’19, and the risk of another inventory build-up as well as the ESG risks related to e-cigarettes. We anticipate forward-looking strategies for Integrated Solutions beyond HTP, as the tobacco association has taken focus away from the overall segment. In terms of future growth prospects, we believe the focus will be on opportunities within Medical Solutions, likely in the US, along with strategies for acquisition driven growth.

Likely to reiterate financial targets
We expect that the event will be largely share price neutral with no major changes to estimates. We anticipate that the group will reiterate financial targets: >75% cash conversion and >35% equity/assets ratio and >10% EBITA margin over the business cycle. However, we note that Nolato has met its margin target over the last 5 years (11% 5y avg.) and a larger focus on Medical growth could justify a higher EBITA-margin target.

Fair value range: SEK 490-580
Our sum-of-the-parts valuation methodology produces a fair value range of SEK 490-580. The share is currently trading at SEK 534 implying 16x ‘19e EV/EBITA. As it currently stands, share volatility is being driven by news relat
...

  • Läs mer på Introduce

  • Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.

info@introduce.se (Introduce.se)
ABG Sundal Collier - Introduce.se

Nolato B - I dag

{point.key}

Marknadsöversikt

Stockholmsbörsen, OMXS30

I dag
-
Senast
-
{point.key}

Världsindex

Index +/- % Senast
DAX - -
Hang Seng - -
Nikkei - -

Valutor

Valuta +/- % Senast
USD/SEK - -
EUR/SEK - -
GBP/SEK - -
EUR/USD - -

Räntor

Ränta +/- % Senast
5-års ränta - -
10-års ränta - -

Råvaror

Råvara +/- % Senast
Guld - -
Silver - -
Koppar - -