Commissioned Research: Serneke

Serneke is an entrepreneurial construction company with strong growth record and high ambitions to improve its underlying profitability.

Commissioned research: Poor sentiment may overlook value

Sentiment in the Swedish construction sector has been poor owing to Serneke and peers’ project writedowns and fears of a decline in Swedish residential construction activity. We suggest that the focus of Serneke’s high-margin ambitions is misguided and that this has exacerbated the perception of a slowdown. We expect margins to improve gradually, in line with the sector average but with the company experiencing higher growth thanks to its project pipeline and growth ambitions. Better visibility in the ongoing project development portfolio and the Karlastaden project, as well as the detailed planning permit potential not reflected in property management portfolio, could turn investor sentiment and lift the share to the higher end of our fair value range of SEK 80-120 per share, which is based on our SOTP, DCF and peer multiples approaches. Marketing material commissioned by Serneke.

Click to download report

Marketing material commissioned by Serneke

To learn more on Commissioned Research, please click here

The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Markets as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.

The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.

Nordea Markets is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.

The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Markets.

Get insights directly in your inbox

Sign up here to receive newsletters and learn more from our world in Nordea Markets.