Alfa Laval: shares rise on Credit Suisse upgrade
(CercleFinance.com) - Shares of Swedish engineering firm Alfa Laval rose today after analysts at Credit Suisse upgraded the stock, saying its valuation is "particularly undemanding.
Credit Suisse upgraded its rating on Alfa shares to "outperform" from "neutral," with a new target price of 275 Swedish kronor, from 220 kronor previously.
In a note on marine equipment companies, the broker said it sees evidence that marine markets have bottomed and believes that Alfa Laval's valuation is particularly undemanding in this context.
"We also see Alfa Laval as having better pricing power in its products, a stronger aftermarket growth track record, and superior FCF conversion," it added.
The stock was recently trading up 1.4%. Before today, it had fallen 8% over the last 12 months.
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