Assa Abloy (Buy, TP: SEK220.00) - Set to deliver when demand stabilises
With a double-digit sales decline in June, we believe management’s comment of a gradual improvement going forward supports our view of -5% organic growth in H2e and the adj. EBIT margin returning to pre-Covid-19 levels by 2021e. We see good risk/reward as the stock is trading at a 2022e EV/EBIT of 15.5x (a 10% discount to its NTM 5-year average). We reiterate our BUY and SEK220 target price.
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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