Electrolux Professional (Buy, TP: SEK50.00) - Quality warrants re-rating
Despite an expected demand hit from increased lockdowns in Q4e, we are 10% above consensus on adj. EBITA as we believe positive mix effects are underestimated. We reiterate our BUY and have raised our target price to SEK50 (41) as the company’s current discount valuation appears undeserved given its solid performance through the Covid-19 pandemic and further recovery potential. Our target price is based on a 2022e EV/EBIT of 14x (previously 12x), still a >5% discount to Middleby’s and Welbilt’s 5-year NTM averages.
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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