Securitas (Buy, TP: SEK150.00) - Good progress towards 2025 goal
The US operation continued to shine in Q1, returning to organic growth with strong earnings leverage, while Europe remained in transformation mode, with our forecasts only tweaked post-results. As the journey towards the 8% profit margin target by end-2025 is still far from discounted in consensus or our forecasts and the stock is trading at a c30% discount to its 10-year average, we believe the near-term integration risks are priced in, particularly with the refinancing risk now neutralised. We reiterate our BUY and SEK150 target price.Securitas is engaged in integrated security solutions. Co.'s main service offering categories are specialized guarding, mobile security services, monitoring, technical solutions and consulting and investigation services. Co. operates in 52 countries throughout North America, Europe, Latin America, the Middle East, Asia and Africa. Co. is organized into three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. In addition to the three business segments, Co. conducts guarding operations in the Middle East, Asia and Africa.
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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