Alfa Laval (Buy, TP: SEK535.00) - Heading for a record order quarter
We are 4% above consensus on Q2e orders where we expect strong end-markets to result in a record order intake of SEK19.3bn and a book-to-bill of 1.10x, but expect the company to guide for somewhat lower demand in Q2. We are in line with consensus on Q2 sales and 2% above on adj. EBITA. We have lowered our adj. EBITA for 2024–2026e by 2–5% (FX and organic), now in line with consensus on for 2024e but 5–7% above for 2025–2026e. We reiterate our BUY but have trimmed our target price to SEK535 (540).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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