Hexpol (Buy, TP: SEK90.00) - Potential positive catalyst ahead
Hexpol will shortly announce estimated synergies from its acquisition of Preferred Compounding, which could be a positive catalyst as we believe the market has overlooked the potential level of synergies. Furthermore, in our view even a modest improvement in automotive sentiment would benefit Hexpol as our H2e reflects no improvement from Q2 when weak automotive demand led to an organic sales drop of 10% YOY. BUY maintained and target price trimmed to SEK90 (91) on 2% lower 2020e EPS.
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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