Hexpol (Buy, TP: SEK130.00) - Stay cool with Hexpol
After beating adj. EBIT margin consensus for the fourth quarter in a row, we believe Hexpol has proven its tight cost control and investor concerns about margin dilution from raw materials costs should ease. We like its sector-leading organic growth and margin recovery, set for a 2020–2023e EPS CAGR of 19%, and believe the M&A option is undervalued and could offer a re-rating of the stock. We reiterate our BUY and have raised our target price to SEK130 (120).
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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