Autoliv (Buy, TP: SEK910.00) - Share price reflective of headwinds
Further OEM production cuts due to supply-chain issues have led IHS to trim LVP estimates for H2 2021–H1 2022. For Autoliv, we have cut our adj. EBIT by 14% for 2021e, 9% for 2022e and 1% for 2023e, and believe it will cut its 2021 guidance for organic sales growth from c16–18% to c8%, and adj. EBIT margin from c9–9.5% to c8.7%. We believe the short-term issues are well reflected in the share price, and that the long-term industry fundamentals, and for Autoliv in particular, look attractive. We reiterate our BUY, but have cut our target price to SEK910 (940).
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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