Autoliv (Buy, TP: SEK650.00) - LVP facing a year worse than 2009
The automotive industry is heading for a year that could be the worst in modern times, with global light vehicle production (LVP) falling 22% in 2020e. We now expect organic sales to fall 16% and EBIT to drop 41% YOY. However, at a 2021e EV/EBIT of 7x, we believe the recent sell-off offers a particularly good entry point in a quality market leader yet to realise the high market share in its order book. We reiterate our BUY, but have cut our target price to SEK650 (850).
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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