Alfa Laval (Hold, TP: SEK235.00) - Energy and Marine driving growth
The broad-based recovery seen in Q4 2017 continued in Q1 2018, primarily driven by the Energy division, with 16% YOY group organic order intake growth. The company is well positioned to enjoy further growth, driven by industrial capex, oil & gas, and from Marine. We therefore raised our 2018e and 2019e EBIT adj. estimates by 7% and 5%, respectively. To reflect higher estimates, we have raised our target price to SEK235 (220) but keep our HOLD as we find the valuation fair.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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