Hexagon AB (Hold, TP: SEK145.00) - Robust but close to fair value
Hexagon looks well positioned for structural growth trends in improving end-markets, and we see clear industrial logic for its acquisition of Infor EAM. We have raised our 2022e sales, adj. EBIT and adj. EPS by ~6%, ~7%, and ~1%, respectively, to reflect the broad-based Q2 beat and Infor EAM. We still believe the bar is set high, with a 2022e EV/EBIT of 27x, which leaves us in neutral territory. Hence, we reiterate our HOLD but have lifted our target price to SEK145 (122).Hexagon is engaged in the provision of integrated design, measurement and visualization technologies. Co. has two segments: measurement technologies, which consist of Geosystems that captures, processes and stores position-related information, Metrology, which provides manufacturing evaluation, process qualification and final parts inspection, and Technology, which provides engineering software as well as geospatially powered solutions; and Other Operations, which focuses on the transportation industry in the car and heavy vehicle segments. The Other Operations conducts its business in the Nordic region.
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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