Scandinavian Tobacco Is Poised for Attractive Yields, DNB Says, Initiating with Buy

• (PLX AI) - Scandinavian Tobacco has attractive yields with strong total shareholder return potential, analysts at DNB said, initiating coverage of the stock with a buy rating.
• • Price target DKK 155
• • STG is a well managed cigar company despite challenging end-markets, DNB said
• • The company has 3-5% medium term EBITDA growth outlook, strong cash flow and potential for value-enhancing M&A: DNB
• • The stock should trade up to historical multiples, offering 8% upside on the current price plus 6% dividend yield, the analysts said
• • STG is trading up 1.4% at DKK 126.30 in late morning