SB1 repeats its Buy rating for Norwegian residential developer Selvaag Bolig but cuts the price target to 36 Norwegian kroner from 40 following the third quarter.
The cut follows weaker project margins than expected. EBITDA was 35 percent below the forecast and the bank lowers its margin assumption to 12 from 13 percent through 2028.
At the same time, SB1 sees potential for a margin recovery from 2029 through the Fornebu Sentrum project. The stock trades at a P/E ratio of 7.5 on normalized earnings, which the bank considers attractive.
