Assa Abloy: Oddo confirms Buy rating
(CercleFinance.com) - Oddo believes that Assa Abbloy will have a very complicated second quarter, expecting a 13.
2% decline in organic sales and an EBIT margin of 8.4%... although the consensus is already very (over?) cautious.
As such, the broker believes that there is limited risk of an unpleasant surprise when it announces its results. The consensus expects a 22.5% fall in Q2 sales, with an EBIT margin of 8.9%.
Meanwhile, Oddo expects EBIT that is 3.5% above this level. It says that FCF should remain solid, which is a key element for the group's recovery (and for acquisitions, which are in the group's DNA) - also an EBIT margin close to 16% is credible by the end of the year.
The broker confirms its buy rating on the share, with a target price of 228 Swedish kronor.
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.
2% decline in organic sales and an EBIT margin of 8.4%... although the consensus is already very (over?) cautious.
As such, the broker believes that there is limited risk of an unpleasant surprise when it announces its results. The consensus expects a 22.5% fall in Q2 sales, with an EBIT margin of 8.9%.
Meanwhile, Oddo expects EBIT that is 3.5% above this level. It says that FCF should remain solid, which is a key element for the group's recovery (and for acquisitions, which are in the group's DNA) - also an EBIT margin close to 16% is credible by the end of the year.
The broker confirms its buy rating on the share, with a target price of 228 Swedish kronor.
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.