”Norwegian Air Shuttle has had a positive price trend in recent weeks and this is confirmed by rising consensus estimates. The drop in the price of oil may result in further upward adjustments to profit expectations. The company reports traffic figures this week and we expect a solid interim report on October 25,” writes DNB in this week’s portfolio update.
In addition, the share is cheap, according to DNB.
“The valuation has long been attractive. But with falling estimates, it has been difficult for the market to have confidence in the multiples. Now that the estimates are rising, however, we expect the market to place more emphasis on the share only trading at a p/e of 7.4x,” DNB writes.
However, the shipowner family gets Olsen’s holding company Happiness leave the briefcase.
“Bonheur has had a sideways development since we included it in the portfolio in July and has done marginally better than the Oslo Stock Exchange’s OSEBX index. But the lack of positive price momentum means that the share may leave the portfolio,” writes DNB.
DNB’s model portfolio is up 13.8 percent since the turn of the year. At the same time, the Oslo Stock Exchange has risen 7.3 percent.
After this week’s update, the portfolio consists of Aker BP, Protector, Norwegian Air Shuttle, Sparebank1 SR Bank, Storebrand, Subsea 7, Veidekke, Vår Energi and Children.
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