Assa Abloy: Oddo raises target price
(CercleFinance.com) - Oddo maintains its "outperform" rating on Assa Abloy shares, having increased its target price for them from 295 Swedish kronor to 303 Swedish kronor.
The analyst highlights very strong demand in Europe and the US, forecasting 7% organic growth in Q3 and an EBIT margin of 15.2% (vs 15.9%).
However, the broker believes that Q3 will be "subdued", penalised by certain unfavourable factors (raw material price inflation, an FX impact on the EBIT margin, the shutdown of two of the group's factories for two weeks in Malaysia and New Zealand, and worsening payment conditions in China).
Even so, it hails the group's highly reactive nature in adjusting costs and passing on price increases in an inflationary environment, which makes it confident in Assa Abloy's ability to improve its EBIT margin, analysts conclude.
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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.
The analyst highlights very strong demand in Europe and the US, forecasting 7% organic growth in Q3 and an EBIT margin of 15.2% (vs 15.9%).
However, the broker believes that Q3 will be "subdued", penalised by certain unfavourable factors (raw material price inflation, an FX impact on the EBIT margin, the shutdown of two of the group's factories for two weeks in Malaysia and New Zealand, and worsening payment conditions in China).
Even so, it hails the group's highly reactive nature in adjusting costs and passing on price increases in an inflationary environment, which makes it confident in Assa Abloy's ability to improve its EBIT margin, analysts conclude.
Copyright (c) 2021 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.