Hexpol (Buy, TP: SEK120.00) - Set to rub it in
We believe the Q2 results could prompt 3–4% positive estimate revisions for the coming years, as we are 16% above consensus on Q2 adj. EBIT. Consensus is for an 8% QOQ sales decline while we forecast a 6% increase, from: 1) 3% QOQ growth in weighted LVP production; 2) ASPs set to rise QOQ to offset higher raw materials costs (synthetic rubber +11% YOY in Q2 after -2% in Q1); and 3) fully integrated acquisitions, which could add 2% QOQ sales growth. Our 2021–2022 adj. EBIT forecasts are unchanged, and we reiterate our BUY and SEK120 target price.
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.