Assa Abloy: Berenberg now a buyer of the stock
(CercleFinance.com) - The Assa Abloy stock is up 1.
6% on Wednesday after Germany's Berenberg upgraded its rating on the Swedish lockmaker from "hold" to "buy," praising the upside potential in its growth.
"Assa Abloy shares have underperformed the sector by around 13% over the past two years due to weak organic revenue growth, not enough M&A and issues in China," the broker said.
"But now we think there is scope for it to grow even faster than its organic revenue growth target of 5%," it added.
Berenberg also raised its target price on the stock from 180 Swedish kronor to 211 Swedish kronor, expecting the company to deliver strong EPS growth, with the shares consequently outperforming.
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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.
6% on Wednesday after Germany's Berenberg upgraded its rating on the Swedish lockmaker from "hold" to "buy," praising the upside potential in its growth.
"Assa Abloy shares have underperformed the sector by around 13% over the past two years due to weak organic revenue growth, not enough M&A and issues in China," the broker said.
"But now we think there is scope for it to grow even faster than its organic revenue growth target of 5%," it added.
Berenberg also raised its target price on the stock from 180 Swedish kronor to 211 Swedish kronor, expecting the company to deliver strong EPS growth, with the shares consequently outperforming.
Copyright (c) 2018 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.