Alfa Laval (Buy, TP: SEK440.00) - From cyclical to structural growth
Alfa Laval’s Q2 results supported our case that its growth profile is gradually shifting from cyclical to structural, with demand driven by the energy transition, offsetting cyclical weakness. The results also provided further evidence that consensus continues to underestimate the potential structural margin uplift in Energy and Marine’s demand outlook. We have made small changes to our estimates (2023e adj. EBITA down 2%, but 2024–2025e up 1–2%). We reiterate our BUY and have raised our target price to SEK440 (435).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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