DnB Markets - Husqvarna AB Class B (HUSQ B) Husqvarna (Hold, TP: SEK125.00) - Solid performance once again

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DnB Markets

Christer Magnergård

EUR 469.21 For Business Accounts Only

Husqvarna (Hold, TP: SEK125.00) - Solid performance once again

Husqvarna has been a relative winner during the stay-at-home trend this past year. It has extended its streak of better-than-expected quarterly results to eight, with demand strong in Q3. The next likely catalyst is the CMD on 1 December, where we could see a new EBIT-margin target and/or more details on its robotic-mower business. The 2022 outlook looks better post the Q3 report, but risks remain regarding a reversal of the stay-at-home trend and the lack of Briggs & Stratton engines, hence we maintain our HOLD and target price of SEK125.

20/10/2021 22 EN

Underlying

Husqvarna AB Class B

Husqvarna AB produces outdoor power products. Products include: robotic lawn mowers, chainsaws, handheld petrol-powered products such as clearing saws and trimmers, garden tractors, and lawn mowers. Co. is also engaged in providing consumer watering products, cutting equipment and diamond tools for the construction and stone industries. Co.'s products and solutions are sold via dealers and retailers. Co. has three business areas: Europe & Asia/Pacific and Americas, which provide forest, park and garden products to dealers and retailers in Europe and Asia/Pacific, and in North and Latin America, respectively; and Construction, which provides light construction products and diamond tools.

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SE0001662230 Nasdaq Nordic Stockholm Sweden

Provider

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.

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Analysts

Christer Magnergård

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Husqvarna (Hold, TP: SEK125.00) - Solid performance once again

Husqvarna (Sell, TP: SEK63.00) - Tough Q1 expected

Husqvarna (Sell, TP: SEK63.00) - Under pressure

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Elkem (Hold, TP: NOK20.00) - Muddling through

ABB (Buy, TP: SEK595.00) - Non, je ne regrette rien

Equinor (Hold, TP: NOK300.00) - Stable valuation relative to peers

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