Sandvik AB: 1 director

A director at Sandvik AB bought 1,500,000 shares at 228.810SEK and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearl...

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 04/23/2024

In the run-up to the 2024 Summer Olympic Games and Euro 2024 football tournament, we have identified six stocks to favour: JCDecaux, Accor, Sodexo, adidas, Unibail-Rodamco-Westfield and easyJet. While these two major sporting events are not expected to have a significant impact on the host economies in the medium term, the microeconomic and sectoral impacts should be more marked. The tourism, transport, beverages and consumer goods sectors are expected to be the main winners. Some med...

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 23/04/2024

En amont des Jeux Olympiques d’été et de l’Euro de football 2024, nous identifions 6 valeurs à privilégier  : JCDecaux, Accor, Sodexo, adidas, Unibail-Rodamco-Westfield et easyJet. Alors que ces deux évènements sportifs majeurs ne devraient pas avoir d’impact significatif sur les économies hôtes à moyen terme, les impacts microéconomiques et sectoriels devraient être plus marqués. Les secteurs du tourisme, des transports, des boissons et des biens de consommation devraient être les pr...

Sandvik (Hold, TP: SEK245.00) - Weakness expected but not flagged

Q1 was weak, but management commentary suggests the issues were both expected and temporary, and should recover through the year. We are still left with some concerns – particularly the margin weakness and why the temporary issues in SMR had not been communicated if they were anticipated. Early Q2 trading comments for SMM (stable compared to Q1) do not change our view of the short cycle in general or the division in particular. We have lowered our 2024–2026e underlying adj. EBITA by 2–3%, but po...

Sandvik : Un début d’année compliqué, mais qui semblait anticipé par l...

>T1 2024 : commandes et CA en recul de 5% en organique, marge en fort recul - Sandvik a publié hier, en journée, ses résultats T1 2024 (voir détails en page suivante).Les prises de commandes étaient en recul organique de 5% yoy (-6.5% attendu par le css) avec une demande stable sur des niveaux élevés dans le secteur minier et en baisse sur les infrastructures et le secteur industriel (avec des signaux tout de même positifs, voir ci-dessous). Le CA a reculé d...

Sandvik : A complicated start to the year, but it appears to have been...

>Q1 2024: orders and revenues down 5% on an organic basis, sharp contraction in the margin - Sandvik published its Q1 2024 results yesterday (see details overleaf).The order intake was down organically by 5% y-o-y (-6.5% expected by the consensus), with stable demand at high levels in the mining sector and contracting demand in the infrastructure and industrial sectors (though with some positive signals, see hereafter). Revenues were down 5% on an organic ba...

ODDO : Favour Metso while waiting for the next cycle

We are initiating coverage of the mining equipment segment with Metso on Outperform, Sandvik on Neutral and Epiroc on Underperform. We have adopted a cautious scenario with demand stable or slightly up in the short term (mining business sales up +3% on average between 2024 and 2026), pending positive signals indicating a rebound in greenfield investments (not before 2027, in our view). In this scenario, we think that Metso should confirm the progress achieved in 2023 (margin impr...

ODDO : Privilégier Metso dans l’attente du prochain cycle

Nous initions le segment des équipementiers miniers avec Metso à Surperformance, Sandvik à Neutre et Epiroc à Sous-performance. Nous adoptons un scénario prudent avec une demande stable ou en légère hausse à court terme (CA des activités minières en hausse moyenne de 3% entre 2024 et 2026), dans l’attente de signaux positifs indiquant un rebond des investissements greenfield (pas avant 2027 selon nous). Dans ce scénario, nous estimons que Metso devrait confirmer les progrès réali...

Sandvik (Hold, TP: SEK245.00) - Probably past the worst in SMM

We are roughly in line with consensus on Q1e and forecast broadly unchanged underlying markets QOQ. We expect comments on demand to remain solid for Mining and soft for Infrastructure, while early trading comments for daily order intake in Sandvik Manufacturing and Machining Solutions (SMM) for the first few weeks of Q2 are set to indicate it has been stable or improved slightly QOQ. We have raised our adj. EBITA 2–3% for 2024–2026e (on FX) and have raised our target price to SEK245 (225), but r...

Sandvik (Hold, TP: SEK225.00) - Short-cycle positive surprise

The strength of underlying demand in Sandvik’s cutting tools business has led us to believe we could be too bearish on SMM and other short-cyclical exposure in the sector for 2024. While SMR and SMM margins disappointed in Q4, the new cost-savings programme means we have trimmed our 2024–2025e adj. EBITA by just 1% on average. We reiterate our HOLD but have raised our target price to SEK225 (215).

Sandvik (Hold, TP: SEK215.00) - Q4e similar to Q3

We expect broadly unchanged underlying markets QOQ and do not deviate materially from consensus on Q4e, but we are now 6% below on 2024–2025e adj. EBITA after updating our model for FX. We reiterate our HOLD but have raised our target price to SEK215 (195) on the valuation, as peers have re-rated since our last update.

Decoding Alpha

Our analysis of underlying total shareholder return (TSR) drivers for Swedish Industrial companies reveals that high returns are not synonymous with high valuations. Investors tend to overpay for ‘growth’, while cash returns such as dividends and buybacks are typically deeply discounted. We believe Autoliv, Alfa Laval and Hexagon offer the most long-term TSR potential (13–14% annualised), with SKF and Trelleborg at the other end of the spectrum (8–9%), while also concluding that several stocks l...

Sandvik (Hold, TP: SEK195.00) - Short-cycle slowdown

Sandvik’s Q3 report disappointed, primarily on SMR and SMM order intake. We believe the miss in SMR can largely be explained by factors other than underlying demand and is thus not cause for concern, while for SMM, the short-cycle slowdown seems to be more pronounced. We have trimmed our adj. EBITA by 1–2% for 2023–2025e and cut our target price to SEK195 (220). We reiterate our HOLD.

Sandvik (Hold, TP: SEK220.00) - HOLD the shares, not your breath

We have downgraded to HOLD (BUY) and cut our target price to SEK220 (245). We believe Sandvik is a potential break-up story long-term but this is unlikely to materialise in a realistic time frame, while we find the SOTP upside potential to cSEK240/share less appealing than before. We favour SKF (BUY) over the SMM business for short cyclical exposure and would suggest investors hold Epiroc (HOLD) and Metso (BUY) over the SMR/SRP businesses for mining exposure. The Q3 results are due at 11:30 CET ...

Global Tungsten & Powders Corp - Strategy, SWOT and Corporate Finance ...

Summary Global Tungsten & Powders Corp - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Global Tungsten & Powders Corp (GTP), a subsidiary of Plansee Holding AG, manufactures tungsten and molybdenum powders and specialty products. The company offers various chemica...

Northern Lights

Sandvik (Buy, TP: SEK245.00) - Positive view intact

While we have fine-tuned our underlying estimates following Sandvik’s Q2 results, we have cut our 2023e adj. EBITA by 2% and 2024–2025e by 6% on the back of negative FX. We reiterate our BUY but have trimmed our target price to SEK245 (255), still viewing the SOTP discount as attractive, as well as liking the repositioning of SMM to include more software and high-growth assets and the structural exposure of the mining business.

Sandvik (Buy, TP: SEK255.00) - Set for a beat

We are 9% above consensus on Q2e adj. EBITA, as we believe consensus is underestimating the continued resilience in SMM and positive effect from prices offsetting cost inflation in all divisions. We reiterate our BUY and have increased our target price to SEK255 (250) after raising our 2023–2025e adj. EBITA by 4–5%, mainly due to FX.

Northern Lights

Sandvik (Buy, TP: SEK250.00) - 2023e appears largely on track

While we have raised our near-term growth estimates for SMM, the Q1 results have not changed our positive view on Sandvik. The adj. EBITA margin was soft, but we see mitigating factors in that Q1 was hurt by some one-offs and the fact that prices are now offsetting cost inflation in all divisions. We reiterate our BUY and SEK250 target price.