Electrolux Professional (Hold, TP: SEK66.00) - No M&A for over two years
We have downgraded Electrolux Professional to HOLD (BUY). While we view it as a strong post-Covid-19 ‘reopening case’ and believe there could be further upside to consensus (we are 6–7% above on 2021–2023e adj. EBIT) – at a 2022e EV/EBIT of 16.5x, we view the valuation as fair. Should it manage to reignite M&A activity (last acquisition made in April 2019), we see potential for further multiples expansion, but visibility is low. We have raised our target price to SEK66 (63).
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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