DB initiates Neste with 'hold' seeing bumps on its SAF road

OX2 AB (publ)

14/05/2024 14:38

** Deutsche Bank starts coverage of Finnish biofuels maker
Neste  NESTE.HE  with "hold" rating, saying it sees bumps on the
company's SAF road
    ** DB says while SAF (sustainable aviation fuel) will likely
take flight in 2024, the bumps it sees along the way justify the
valuation
    ** The broker says it likes Neste's investment case, and
adds the company is likely to benefit from structural market
drivers that could translate into solid volume growth
    ** It initiates Neste with TP of EUR 25, compared to the
previous close of EUR 22.52
    ** DB cuts Swedish peer OX2  OX2SE.ST  to "hold" from "buy"
after Swedish private equity firm EQT's takeover offer price on
Monday came "only in-line" with renewable energy group's 2021
IPO price, which the broker says might disappoint some IPO
investors
    ** NESTE has fallen more than 30% YTD, while OX2 has gained
around 7%

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))