Assa Abloy (Buy, TP: SEK330.00) - Further savings coming through
We reiterate our BUY but have trimmed our target price to SEK330 (335), as, despite raising our underlying estimates, we have lowered our 2024–2025e adj. EBIT by c2% due to FX (2023e is broadly unchanged). While management reinforced its comments on weakness in residential construction, Assa Abloy remains our sector top pick and has the most defensive profile in the Swedish industrial sector in our view, while we believe a new cost-saving initiative means less downside risk to estimates than the sector on average.ASSA ABLOY provides a range of door opening solutions. Co. is organized into five divisions. Europe, Middle East and Africa division, Americas (North and South America) division and Asia Pacific (Asia, Australia and New Zealand) division manufacture and sell mechanical and electromechanical locks, security doors and hardware in their respective geographical markets. Global Technologies division operates worldwide in the product areas of access control systems, secure card issuance, identification technology and hotel locks. Entrance Systems division is a global supplier of entrance automation products and service.
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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