Kinnevik: Pareto says "take profits" as high valuation limits potential

Kinnevik AB

07/06/2021 10:16

** Shares of Kinnevik  KINVb.ST  fall 5% after Pareto double
downgrades its rating on the Swedish investment company to
"sell" from "buy"
    ** Pareto says it is "time to take profits" and wait for a
more attractive entry point, as it expects the stock to cool off
over the next few months
    ** "Kinnevik currently trades at a premium of 24% vs current
NAV, a historically rich level that we find hard to sustain,"
the broker says
    ** It adds the company's unlisted healthcare assets, which
have contributed significantly to its NAV growth over the past
couple of years, have seen a substantial raise in value this
year, which is likely to limit further growth
    ** Out of eight analysts that cover Kinnevik, four rate the
stock "strong buy" or "buy" ​three "hold", and one "sell",
according to Refinitiv data
    ** The stock, up 27% YTD, is among the worst performers on
STOXX 600  .STOXX  index

 ((milla.nissi@tr.com))