Systemair (Buy, TP: SEK86.00) - Limited changes ahead of results
Systemair is set to report its Q2 2023/24 results on 7 December (time not known). We estimate Q2 sales of SEK3,090m (in line with consensus), while our 9.8% margin puts us c6% below consensus on adj. EBIT. We have updated our model and lowered our 2023–2025e adj. EBIT by c3% on average, and have thus cut our target price to SEK86 (90). We still see Systemair as a strong growth story to leverage increasing energy efficiency focus globally. We expect robust earnings growth medium- to longer-term, driven by continued margin expansion and solid demand in Systemair’s main regions. The valuation is now c20% below historical levels, and we believe its discount to relevant peers is too large. Hence, we see the risk/reward as attractive at the current share price. We reiterate our BUY.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.