Alimak (Hold, TP: SEK127.00) - Execution, the missing piece
Alimak reported – yet another – disappointing quarter. We have lowered our 2020–2022e adj. EBIT by 9%, 5% and 2%, respectively, but reiterate our HOLD and SEK127 target price, as we view the valuation as fair at a 2022e EV/EBIT of c11x. We still like the aftermarket potential in Wind and BMU as well as the overall message from the 8 October CMD, but view execution as the missing piece that would enable sentiment on the stock to improve.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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