Alfa Laval (Buy, TP: SEK335.00) - A cleantech company
We have upgraded Alfa Laval to BUY (HOLD) as we expect a multi-year ESG re-rating and the >10% lag versus the sector over the past year to close as Oil & Gas and Marine have continued to recover. Hydrogen, energy storage, and sustainable fuels remain small but, together with HVAC and other clean technologies, stand for more than half of group sales and position Alfa Laval well for structural and sustainable growth beyond its target of >5% over a cycle. We have lifted our target price to SEK335 (235), equal to a 2022e EV/EBIT of 20x.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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