Report
Christer Magnergård
EUR 461.03 For Business Accounts Only

Electrolux (Buy, TP: SEK255.00) - Supply is the issue, not demand

Supply-chain issues and cost inflation continue to affect earnings. However, we believe consensus is too conservative. We are 16% above consensus for Q4 EBIT and 10% above for 2022e EBIT. In addition to the potential for consensus to come up, we believe further share buybacks (c5m shares/quarter) should support the stock. We reiterate our BUY and have raised our target price to SEK255 (250) ahead of the Q4 report (due at c08:00 CET on 29 January).
Underlying
Electrolux AB Class B

AB Electrolux sells home appliance for households and businesses, with products such as refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances under brands such as Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine. Co. has six segments: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; and Small Appliances, which comprise the products for consumer durables market; and Professional products. Co.'s professional products include food-service equipment for hotels, restaurants and institutions, as well as laundry equipment.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Christer Magnergård

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