Assa Abloy (Buy, TP: SEK240.00) - Set for a swift rebound
Following Assa Abloy’s preliminary Q1 earnings report, we have cut our 2020e EBIT by 10% (2021–2022e by 2%) on lower margin assumptions. Although we expect -16% organic growth YOY in Q2 (Q1: -3%), we see only a 200bp QOQ margin drop as cost initiatives start to show. We expect a swift recovery as soon as Covid-19 fades and normal business drivers return. We reiterate our BUY with a new lower target price of SEK240 (245).
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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