Dometic (Buy, TP: SEK128.00) - Set for solid growth and margins
In our view, Dometic is set to benefit from strong end-markets given the need to replenish dealer inventories, while we expect margins to rise on improved pricing and production costs for new products and another SEK300m in savings from the restructuring programme. Our retail pricing index is up 6% YTD, indicating healthy demand for Dometic’s products and a good pricing environment into 2021e. We reiterate our BUY and SEK128 target price.Dometic Group AB serves the market with a range of air conditioners, refrigerators, awnings, cookers, sanitation, lightning, mobile power equipment, windows, doors and other comfort and safety products. The products are sold in approximately 100 countries and are mainly produced in wholly owned production facilities around the world.
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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