Skanska AB Series B

Skanska is a project development and construction group, concentrated on selected home markets in the Nordic region, European countries and in the Americas. Co.'s business streams are: construction, which includes building and civil construction; residential development, which develops residential projects for immediate sale; commercial property development, which initiates, develops, leases and divests commercial property projects, with project development focusing on office buildings, retail and logistics properties; and infrastructure development, engaged in identifying, developing and investing in privately financed infrastructure projects, such as highways, hospitals and schools.
  • TickerSKA B
  • ISINSE0000113250
  • ExchangeNasdaq Nordic Stockholm
  • SectorConstruction & Materials
  • CountrySweden

Analysts

Ibrahim Firdaus

Skanska

Ibrahim Firdaus

Skanska

Simen Mortensen

Skanska Minor model adjustments

We have updated our Q2 estimates (results due at c07:30 CET on 24 July), owing to the 10 July announcement on two cases expected to add SEK408m to Q2 EBIT, a central provision of SEK212m on the Czech Republic R4 project (non-cash flow), and SEK196m in damages (cash flow) awarded to Skanska Norway in the Follo EPC Oslo S case. We do not consider these changes to be material for our underlying investment case, where we have reduced 2019–2020e EPS by c0.3%. We have not changed our SELL recommendation, but have raised our target price to SEK141 (140) on the EPS effect.

Christoffer Wang Bjørnsen ...
  • Karl-Johan Bonnevier
  • Marius Knudssøn
  • Martin Arnell
  • Nicolas McBeath
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Simen Mortensen

Skanska (Sell, TP: SEK140.00) - CD boost, but few orders

Skanska announced SEK6.8bn in commercial property asset sales in Q2, which has made us raise our Commercial Developments (CD) Segment forecasts. Order bookings announced so far for Q2 are at a 5-year low for a second quarter, we have cut our construction forecasts. We reiterate our SELL and have reduced our target price to SEK140 (155). The Q2 results are due at c07:30 CET on 24 July.

Simen Mortensen

Skanska Minor model adjustments

We have updated our Q2 estimates (results due at c07:30 CET on 24 July), owing to the 10 July announcement on two cases expected to add SEK408m to Q2 EBIT, a central provision of SEK212m on the Czech Republic R4 project (non-cash flow), and SEK196m in damages (cash flow) awarded to Skanska Norway in the Follo EPC Oslo S case. We do not consider these changes to be material for our underlying investment case, where we have reduced 2019–2020e EPS by c0.3%. We have not changed our SELL recommendation, but have raised our target price to SEK141 (140) on the EPS effect.

Simen Mortensen

Skanska (Sell, TP: SEK140.00) - CD boost, but few orders

Skanska announced SEK6.8bn in commercial property asset sales in Q2, which has made us raise our Commercial Developments (CD) Segment forecasts. Order bookings announced so far for Q2 are at a 5-year low for a second quarter, we have cut our construction forecasts. We reiterate our SELL and have reduced our target price to SEK140 (155). The Q2 results are due at c07:30 CET on 24 July.

Simen Mortensen

Skanska (Sell, TP: SEK155.00) - Risk in CD and book-to-build

Today Infront consensus for Q1 was released, but given that Skanska only announced four sales for SEK1.4bn in Q1, we see potential downside as we expect lower EBIT in Commercial Development (CD) versus consensus. We are in line on both Construction and Residential Development (RD), while we are concerned about negative book-to-build. We reiterate our SELL and SEK155 target price, as we expect a weakening balance sheet and still-low margins in Construction in 2019. The Q1 results are due at 07:30 CET on 26 April.

Simen Mortensen

Swedish housing still weak – civil strong but set for some delays

With a high number of housing starts in the past two years set to reach completion this year, we expect a still-high market supply of homes for sale during this year. We expect civil markets to grow in line with national budget spending, but see a risk of delayed Norwegian public projects. Valuations have declined, but so has growth. With mixed business cycles, we see limited valuation upside potential; we thus keep our neutral sector stance. Our top sector picks are NRC (rail engineering) and NCC (turnaround case).

Simen Mortensen

Skanska (Sell, TP: SEK155.00) - Plot the dots; we cut DPS forecast

Skanska presented a new NIBD adj. financial target at its CMD. It also indicated that working capital might shrink SEK5bn–6bn. It cut its DPS18 because the equity was below the ‘group equity requirement’. These two factors led us to cut our NIBD and DPS forecasts. Skanska stated it will not meet its construction EBIT margin target in 2019/20e and its project development target (ROCE) is “within reach, but tougher to reach”. We retain our SELL and our SEK155 target price.

A director sold 2,000 shares at 182.356SEK and

A director at Skanska Ab sold 2,000 shares at 182.356SEK and the significance rating of the trade was 53/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of boa...

Christoffer Wang Bjørnsen ...
  • Karl-Johan Bonnevier
  • Marius Knudssøn
  • Martin Arnell
  • Nicolas McBeath
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Eivind Sars Veddeng
  • Joachim Gunell
  • Jon Masdal
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

Frank Maaø ...
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Ole-Andreas Krohn ...
  • Simen Mortensen

Northern Lights

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Joachim Gunell
  • Karl-Johan Bonnevier
  • Mattias Montgomery
  • Ole-Andreas Krohn
  • Patrik Ling
  • Simen Mortensen
  • Stefan Gauffin

Northern Lights

Ibrahim Firdaus

Skanska

Ibrahim Firdaus

Skanska

Ibrahim Firdaus

Skanska

Ibrahim Firdaus

Skanska

Ibrahim Firdaus

Skanska

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Expert Corporate Governance Service (ECGS)

Skanska, March 28, 2019

In general, Skanska is in compliance with the Swedish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 13, the nomination committee proposes to increase the remuneration of the board of directors by approximately 3.0%. In ECGS' view, the current fees are already at the upper level of Swedish market practice for a company with the size and complexity of Skanska and it therefore does not approve of any increases without adequate justification. Since the proposal is not adequately justified, ECGS recommends to vote OPPOSE. Under ITEMS 14a-14g, th...

Skanska – Proxinvest Corporate Governance Rating ® : C

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