Assa Abloy (Buy, TP: SEK345.00) - M&A, FX drives positive revisions
We are in line with consensus on sales and adj. EBIT for Q1e and expect end-market trends broadly similar to Q4, with the company demonstrating defensive characteristics and the ability to perform well in a weak construction market (2/3 of sales are aftermarket). We reiterate our BUY and have increased our target price to SEK345 (325) after raising our 2024–2026e adj. EBIT by 4–5% (driven by FX and M&A); we are 3–4% above consensus.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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