Bergman & Beving AB: 1 director

A director at Bergman & Beving AB bought 1,344 shares at 283.500SEK and the significance rating of the trade was 53/100. 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 c...

Bergman & Beving (Hold, TP: SEK315.00) - Uncharted valuation territory

The Q1 results matched expectations showing slow growth, but a solid profit margin and FCF. We have marginally revised our forecasts for 2024/25–2026/27 after the results. After a strong share price performance and substantial expansion of valuation multiples, we still find the risk/reward neutral. We reiterate our HOLD and have raised our target price of SEK315 (250), turning to a relative valuation base as the shares seem more momentum- than value-driven at present.

Bergman & Beving (Hold, TP: SEK250.00) - Down to HOLD after revaluatio...

The Q4 report showed weak growth, but a solid profit margin and FCF generation. We have marginally revised our forecasts for 2024/25-2026/67e, following the results. After a solid share price performance and substantial expansion of valuation multiples, we find the risk/reward more neutral. We have downgraded to HOLD (BUY), with an increased target price of SEK250 (200), owing to our new 2026/27e valuation base, which suggests less near-term revaluation potential.

Bergman & Beving (Buy, TP: SEK200.00) - New target ‘500/10/45’ by 2025...

The Q3 report showed stronger profit margins and FCF generation, which we believe allows for a continued acquisition focus (six deals YTD), offsetting weaker demand indicators and FX. We have raised our 2023/24–2025/26e EPS by 4–7%. We see potential in the ‘focus model’ to reach a 10% EBIT margin and EBIT of SEK500m by 2025/26 and P/working capital of 45% by 2026/27, now in our value gap analysis. We reiterate our BUY and have raised our target price to SEK200 (170).

Bergman & Beving (Buy, TP: SEK170.00) - Strong Q2 execution

The Q2 report showed strengthening profit margins and FCF generation, which we believe allows for a continued acquisition focus (four deals YTD), offsetting weaker demand indicators and FX. We have raised our 2023/24–2025/26e EPS by 1–4%. We see potential in the ‘focus model’ to grow EBIT to SEK500m by 2025/26, highlighting value creation from internal efficiencies and acquisitions, similar to our value gap analysis. We reiterate our BUY and have raised our target price to SEK170 (165).

Bergman & Beving (Buy, TP: SEK165.00) - Much-improved FCF generation

The Q1 report matched our expectations. We believe the much-improved FCF generation allows for a renewed acquisition focus (three deals YTD), partly offsetting weakening demand indicators and FX, leading us to do only minor 2023/24–2025/26e EPS cuts. We see potential in the CEO’s ‘focus-model’ approach and ambition to grow EBIT to SEK500m by 2025/26, highlighting possible value-creation from internal efficiency and acquisitions, similar to our value gap analysis. We reiterate our BUY and SEK165 ...

Northern Lights

Bergman & Beving (Buy, TP: SEK165.00) - CEO’s focus strategy deliverin...

The Q4 report showed a strong finish to 2022/23, with the group’s focus strategy driving profit margin expansion and FCF generation, even with organic sales growth still in the red. We see potential in the CEO’s focus-model approach and ambition to grow EBITA to SEK500m by 2025/26, highlighting possible short- and long-term value-creation from internal efficiency and acquisitions, similar to our value gap analysis. We reiterate our BUY and have raised our target price to SEK165 (152).

Northern Lights

Bergman & Beving (Buy, TP: SEK152.00) - Still a gap to 2025/26 ambitio...

The Q3 report showed continued solid delivery on the transformation programme, although FCF has yet to improve. We have tweaked our forecasts post-Q3, but updated our target price methodology, and rolled over our forecasts to 2025/26, matching the horizon for the CEO’s ambition of SEK500m in EBITA (our organic scenario still suggests further acquisitions would be needed to hit the target). We see potential in the CEO’s focus-model approach and reiterate our BUY with a raised target price of SEK1...

Northern Lights

Bergman & Beving (Buy, TP: SEK140.00) - FCF yield outlook at 11–13%

Underlying, the Q2 report broadly matched our expectations, with the group’s pricing initiatives helping to balance FX and cost inflation. Value-enhancing acquisitions have so far offset weakening demand indicators and negative FX effects, prompting limited forecast changes. We see potential in the CEO’s focus-model approach and reiterate our BUY but have cut our target price to SEK140 (145).