Supply chain hampers growth
Q3 fell short on all fronts except Hiab orders in APAC and Europe. Hiab and Kalmar are suffering from supply chain problems, and while we expect this gradually to alleviate, we see lower US earnings for Hiab in 2018 on higher costs and unfavourable FX. Kalmar will need new automation orders by Q2 2018 at the latest in our view, and customer activity seems weak. We expect limited earnings growth for 2018 and consider the current valuation fair. We reiterate our HOLD recommendation but have cut our target price to EUR51 (53).Cargotec is a provider of cargo handling solutions. Co. has three business areas: MacGregor, Kalmar and Hiab. MacGregor provides integrated cargo and load handling solutions and services for the maritime transportation and offshore industries. Kalmar offering consists of container and cargo handling equipment and related services, automation, software and integration solutions as well as Navis terminal operating systems, Bromma spreaders and Siwertell bulk handling systems. Hiab is a provider of on-road load handling equipment and services. Hiab provides products, services and spare parts that are used in on-road transport and delivery.
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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