Can be a Good Time to Invest
According to the estimates of the brokerage house, analysts expect Borregaard to receive an EBITA of NOK 85 million in the fourth quarter of 2018, down 37 per cent from the corresponding period last year.
– The reduction is, in our view, still due to negative contributions from the US operations, increased raw material costs year-on-year and some price pressure within parts of the lignin market, writes DNB Markets.
The brokerage house has a purchase recommendation on the share, with a price target of NOK 85 per share.
– With reduced deficits from the US, a flattening of raw material costs into 2019, several growth projects on the way into the figures, a favorable exchange rate development and the price at the moment of NOK 75 per share, we believe the valuation looks attractive.