Husqvarna (Hold, TP: SEK125.00) - Strong Q1 in sight
Positive effects from stay-at-home, low retail inventories, and relatively favourable spring weather should have boosted demand in Q1, confirmed by various data points from peers. We therefore expect Q1 organic growth of 20% YOY and EBIT of SEK2,067m, 3% above Infront consensus. Although Q2 should be solid, there is a risk that comparables will get tougher over the next 12 months, and we see a risk that consumption could shift away from discretionary spending to e.g. travel/entertainment. We reiterate our HOLD but have raised our target price to SEK125 (113).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.
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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