Alimak (Buy, TP: SEK170.00) - A solid quarter ruined by volatility
Solid Q4 organic earnings growth was overshadowed by the volatile nature of the operations with the acquired businesses contributing significantly less to earnings than we expected. We have flattened out our forecast earnings trajectory but we still expect a 2017–2020 adj. EBITA CAGR of 15%, leaving Alimak attractively valued at a 2019e EV/EBIT of c11x. We reiterate our BUY, but have lowered our target price to SEK170 (175).Alimak is engaged in the design, development, manufactue, distribution and servicing of vertical access solutions predominantly in rack-and-pinion, and also traction technologies. Co. supplies industrial elevators, hoists and work platforms based on rack-and-pinion technology. At the core of Co.'s products are the Alimak and Hek rack-and-pinion elevator, hoist and work platform brands as well as Heis-Tek traction elevator brand. Co. operates in the following operational segments: Construction Equipment; Industrial Equipment; Rental and After Sales.
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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