Lindab International (Buy, TP: SEK270.00) - Profile margins bouncing back
For Q2, we estimate sales of SEK3,478m, with organic growth of -4% YOY and an adj. EBIT margin of 8.5%, which overall puts us somewhat below Bloomberg consensus on adj. EBIT. We have increased our 2024–2026e adj. EBIT by c3% on average, and raised our target price to SEK270 (244) after updating our valuation. We reiterate our BUY and note that the latest Euroconstruct data indicates a solid market recovery in the Nordic construction market (c40% of Lindab’s sales) in 2025.Lindab International develops, manufactures, markets, and distributes products and system solutions in steel for construction and improved indoor climate. Co.'s segments are its three business areas: Ventilation, which cover Co.'s ventilation and indoor climate operations; Building Components, which provides the construction industry with systems for roof drainage, lightweight construction and roof and facade solutions in steel; and Building Systems, which produces and sells preengineered steel building systems. Co.'s primary markets are Sweden, Denmark, the U.K., Norway, Germany, Russia, France, Belarus, Poland and Finland.
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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