Alfa Laval: Credit Suisse raises target price

(CercleFinance.com) - Credit Suisse maintains its Underperform rating on Alfa Laval shares, although has nudged up its target price for them from 265 euros to 275 euros.


In the near term, the company will continue to suffer from weak tanker contracts and price/cost issues in the marine sector, which will limit the margin recovery from the 8.0% level achieved in Q3, the broker said.

For Credit Suisse, the headwinds should ease, although inflation and tanker contracts remain a risk.

Regarding energy, Credit Suisse believes that the size of the heat pump business can double by 2025. However, analysts also think that the O&G investment cycle will plateau between 2023 and 2025.


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