FLSmidth (Hold, TP: DKK420.00) - Fairly valued after solid Q1
FLS delivered a solid Q1 with net sales and EBITA in line with consensus and orders 5% above. Orders were particularly strong in Customer Services, triggered by maintenance contracts in mining. FLS’s management retained its cautiously optimistic view on the outlook in mining, despite booking the first large equipment order in three years. We see little upside in valuation, despite our above-consensus forecasts for 2019e and 2020e and keep our HOLD recommendation; our target price has risen to DKK420 (410).FLSmidth & Co. is a supplier of equipment and services to the global cement and minerals industries with a local presence in 50 countries including project and technology centers in Denmark, India, USA and Germany. Co. supplies everything from single machinery to complete cement plants and minerals processing solutions including services before, during and after the construction. Co.'s in-house resources are primarily engineers who develop, plan, design, install and service equipment, with most of the manufacturing being outsourced to subcontractors.
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.