Alfa Laval: UBS maintains 'neutral' rating after CMD
(CercleFinance.com) - UBS on Thursday maintained its "neutral" rating on Alfa Laval, seeing the Swedish engineering group's capital markets day yesterday as a "good start" heading in the "right direction.
In a note to clients, the broker wrote that hopes were likely too high into the event, while poiting out that the company mentioned different options to optimise its capital structure, including a share buyback.
"For now the perception could remain one of a company that is highly complex and diversified and mostly driven by cycles in marine and oil & gas," UBS said.
"With this, the stock could still do well as people get more optimistic on the marine cycle/value stocks but this would not be a sustainable perception change in our view," it added, while sticking to its target price of 221 Swedish kronor for the stock.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.