Alfa Laval (Buy, TP: SEK300.00) - We like Marine, we like Energy
We have upgraded Alfa Laval to BUY (HOLD). The share price has fallen by more than 30% YTD and has lost its outperformance versus the index from last year. We expect demand to benefit from high energy prices and believe the short-term negative Marine sentiment should provide a good buying opportunity, as long-term trends are attractive. We estimate the 2021–2024 adj. EBIT CAGR at 15%, but are 4% below consensus for 2022 adj. EBIT and 5% above for 2023. We reiterate our SEK300 target price.Alfa-Laval AB is a supplier of products and solutions in the technologies of heat transfer, separation and fluid handling. Co.'s equipment is used to heat, cool, separate and transport products in industries that produce food, beverages, fuel, chemicals, pharmaceuticals, starch, sugar and ethanol. They are also used aboard vessels, in power plants, in the engineering industry, for treating sludge and wastewater, for heating and cooling, and others. Co.'s products include: air heat exchangers, plate heat exchangers, shell-and-tube heat exchangers, thermal fluid systems, boilers, decanters, belt filter presses, high-speed separators, membrane filtration, pumps and valves, and tank equipment.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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