SpareBank: Norske Skog should triple if it would trade with peers. Brokers are pointing out to the opportunity:
- Two weeks ago NSKOG was put Top Idea list for September by Pareto
- Sparebank put NSKOG on its top idea list last week. The analyst believes the Norske Skog share price should be three times higher.
- Last week , Carnegie joined the NSKOG bulls with doubling its price target.
See my posts from last two weeks on the above events with details from each analyst report.
NSKOG Investment thesis summary:
- it is very cheap vs its peers – Sparebank research stated : “if valued in line with peers, we argue that a fair price is closer to NOK 100” that is 250% above its current share price.
- its renewable asset portfolio has a higher value than NSKOG current market capitalization
- Newsprint plant closures are pushing prices higher that should multiply NSKOG profitability
- Renewable assets come into production next year (mainly renewable packaging), that should significantly improve profitability further
- Doubling income from selling CO2 permits from 2022 to EURO 60 mln per year should improve profitability materially.
NSKOG will be presenting on Monday its restructuring – dial in details below:
Norske Skog is converting significant parts of its production capacity to
establish one of Europe’s largest producers of recycled packaging, a growing market driven by increased e-commerce. On Monday 27 September at 10:00 am CEST, CEO Sven Ombudstvedt and Senior Vice President Strategic Projects Tore Hansesætre will participate in a presentation at the Xtrainvestor community to give an update on the project and answer questions.
Link to the event:
If interested, last week posts on this blog for summaries of Pareto and Sparebank research on Norske Skog