Report
Mattias Holmberg
EUR 91.87 For Business Accounts Only

Hexagon AB (Hold, TP: SEK575.00) - Recovery priced in

We reiterate our HOLD on Hexagon following the Q4 report, which was broadly in line with consensus. Hexagon is well positioned for structural growth trends, and the company indicated that organic growth should recover in 2020. We believe this is well reflected in its 2020e EV/EBIT of c20x (5-year historical average 18.8x). We have raised our target price to SEK575 (535), corresponding to a 2021e EV/EBIT of c18x.
Underlying
Hexagon AB Class B

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.

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
Mattias Holmberg

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