Assa Abloy (Buy, TP: SEK345.00) - “Boring” is good
The Q1 report was undramatic. Predictable and stable quarterly reports have been part of what made Assa Abloy a favoured stock in the past, and after a few years of higher volatility, we view the “return to boring quarters” as positive – letting long-term growth be the key attraction of the story instead. We have made minor changes to our estimates and reiterate our BUY and SEK345 target price. At a 2024e EV/EBIT of 16.3x (14.6x in 2025e), we like the valuation, especially considering the sector’s recent re-rating.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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