Cargotec (Sell, TP: EUR40.00) - Strong H2 needed to keep guidance
In our view Cargotec’s Q2 was twofold: Kalmar and Hiab delivered strong order intake, while both segments’ profitability weakened, leading to adj. EBIT 18% below consensus. The healthy backlog margin and strong Hiab orders provide support for H2 2018e earnings growth, but we believe consensus 2018e adj. EBIT will come down towards the guidance floor. Our cautious view on Hiab’s growth beyond 2018e is intact, and we reiterate our SELL and EUR40 target price.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.
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