Beijer Ref (Buy, TP: SEK205.00) - CEO expects more acquisitions

Beijer Ref’s Q3 results did not match our forecast, still showing solid organic growth, but with weaker earnings leverage. Short-term delivery problems due to component shortages have fuelled the order backlog and with the market reopening, we see a potential catch-up. We have cut our 2021–2023e EBIT by 5–7%, but have not changed our view of a sound long-term earnings growth case. Following a change of analyst, we reiterate our BUY with a target price of SEK205 (215).