Northern Lights

Cargotec (Sell, TP: EUR39.00) - Sales beat, but weak drop-through

Cargotec delivered impressive sales and order intake growth, with Hiab and Kalmar beating Q1 estimates. However, sales had a lower incremental margin, and adjusted EBIT was in line with consensus. Therefore, we do not expect a significant increase in consensus for 2018e. We see a cyclical downturn for Hiab, more than offsetting the MacGregor recovery in 2019–2020e. We forecast profitability pressure for Kalmar from reducing project workload. We reiterate SELL, and have raised our target price to EUR39 (38).

Northern Lights

Green Landscaping Group (Buy, TP: SEK93.00) - Tough Q1 with Swedish bright spot

Green Landscaping reported a light Q1, with mild weather adversely affecting demand for snow removal services. The top line was c7% shy of consensus, while EBITA was c22% below. The main bright spot was the Swedish margin, coming in above consensus, and showing positive momentum QOQ after several tough quarters in 2024. We reiterate our BUY but have lowered our target price to SEK93 (95).

The weekly navigator

From the past week, we highlight: 1) we lowered our target price in Investor to SEK320 following a 9% write-down of Patricia Industries in its Q1 report; 2) we reduced our target price in Kinnevik to SEK100 to reflect macroeconomic headwinds, but remain positive ahead of Cristina Stenbeck’s return as chair; 3) we cut our VEF target price to SEK2.5 on FX movements and see re-rating potential from e.g. ongoing buybacks; and 4) we lowered our target price in Flerie to SEK57 given worsening funding conditions for biotech assets.

Huhtamaki (Buy, TP: EUR42.00) - Q1 mixed elements

The Q1 results broadly met headline expectations. While underlying North American earnings declined sharply, solid cost actions helped offset the impact at the group level, a trend we expect to continue to support earnings resilience in 2025. We reiterate our BUY and EUR42 target price on minor 2025–2027 estimate changes, and continue to find the NTM EV/EBIT of c11.0x attractive (25% below its historical average).