Alfa Laval: Commerzbank raises target after stellar quarter
(CercleFinance.com) - Commerzbank maintains its "hold" rating on Alfa Laval, but raises its target price from 215 Swedish kronor to 230 Swedish kronor after what it calls a "stellar" first-quarter from the Swedish engineering company, thanks to a strong performance in energy.
In a research note sent to clients, the German broker notes that, while fourth-quarter was driven by strong numbers in marine, demand from energy was the main driver behind the group exceeding the consensus in the past quarter.
The strong demand from the base business (e.g. in Energy Separation) more than offset the absence of large orders form petrochemicals," it said.
Commerzbank also points out that M&A seems to be back on the agenda, adding that from a strategic viewpoint, Alfa would like to strengthen its food and water (F&W) business.
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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.
In a research note sent to clients, the German broker notes that, while fourth-quarter was driven by strong numbers in marine, demand from energy was the main driver behind the group exceeding the consensus in the past quarter.
The strong demand from the base business (e.g. in Energy Separation) more than offset the absence of large orders form petrochemicals," it said.
Commerzbank also points out that M&A seems to be back on the agenda, adding that from a strategic viewpoint, Alfa would like to strengthen its food and water (F&W) business.
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.