Report
Mattias Holmberg

Organic growth momentum

Q3 surprised on the upside with strong 6% organic growth and beating consensus on all parameters. With a positive market outlook from CEO Ola Rollén, particularly on demand outside oil & gas in PPM, we have raised our 2018–2019 forecasts slightly. Following a 30% increase in the shares YTD and a change of analyst, we find the shares fairly valued and have downgraded the stock to HOLD (BUY) but reiterate our SEK450 target price.
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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