DnB Markets - Alfa Laval AB (ALFA) Alfa Laval (Buy, TP: SEK540.00) - Sit back, relax and enjoy the ride

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DnB Markets

Mattias Holmberg

EUR 464.57 For Business Accounts Only

Alfa Laval (Buy, TP: SEK540.00) - Sit back, relax and enjoy the ride

Q1 confirmed that demand remains strong for Alfa Laval and strengthened our view that investors and consensus are exaggerating concerns about the heat pump demand slowdown and underestimating the strength of the Marine market. Alfa Laval remains our sector top pick, being an enabler of the energy transition with promising long-term growth prospects. We reiterate our BUY and have raised our target price to SEK540 (495), having increased our 2025–2026e adj. EBITA by 6–7%.

26/04/2024 1 EN

Underlying

Alfa Laval AB

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.

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SE0000695876 Nasdaq Nordic Stockholm Sweden

Provider

DnB Markets

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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Analysts

Mattias Holmberg

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Alfa Laval (Buy, TP: SEK540.00) - Sit back, relax and enjoy the ride

Q1 trends, estimates, valuation and top picks

Easily brushing HVAC weakness aside

Ultimovacs (Sell, TP: NOK4.00) - Slower recruitment, FOCUS in focus

Loomis (Buy, TP: SEK425.00) - US strength, Euro weakness

Bravida (Buy, TP: SEK97.00) - Quality discount an opportunity

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