Bufab (Hold, TP: SEK430.00) - Reflecting on Q4 results
Sales declined 4% YOY (Bloomberg consensus -5%), with a 20% miss versus consensus on EBIT and 13% on EPS. This was partly driven by increasing the obsolescence reserve, acquisition/divestment and restructuring costs, and negative currency effects. The group EBITA margin was 9.6% (Q4 2023 9.3%) and the adj. EBITA margin was 10.8% (11.8%). We have lowered 2025e EBITA by 5% following a slower US recovery, but have increased 2026e by 5%. We reiterate our HOLD, but have raised our target price to SEK430 (425).Bufab is a trading company that offers its customers a full-service solution as a Supply Chain Partner for sourcing, quality control and logistics for C-Parts (screws, nuts, washers, etc.). Co.'s customer offering, Global Parts Productivity™, aims to enhance the productivity of the customer's C-Parts value chain, reducing their total costs related to C-Parts. Co. has a diversified customer base in several geographies and sectors within the manufacturing industry.
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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