Dometic (Buy, TP: SEK190.00) - Caterpillar turning into a butterfly
Dometic continues to execute its strategy, with earnings tailwinds from organic expansion, higher margins, and M&A as a potential EPS growth driver. In our organic base case, we forecast a 2021–2023e EBIT CAGR of 18%; and, although M&A activity could be more limited short-term, we still see 10% upside potential to our 2023e adj. EBIT from a SEK3.6bn M&A bankroll. We have cut our 2021e EBIT by 1% and raised 2022e by 6% to reflect the latest acquisition. We reiterate our BUY and have raised our target price to SEK190 (185).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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.