Assa Abloy’s Q1 was in line, but the call leaned slightly positive, with April activity trends steady compared with February–March, and no slowdown observed in US non-residential demand despite new tariffs. Some tariff-related pre-ordering in March should support Q2 sales, while Global Tech margin headwinds from M&A are expected to ease. We reiterate our HOLD, but have cut our 2025–2027e sales and adj. EBIT by 3% on average due to FX, and lowered our target price to SEK290 (345).
We have downgraded Assa Abloy to HOLD (BUY), and lowered our target price to SEK345 (390), as we see increased end-market uncertainty (in particular in the US), which is likely to put pressure on consensus and sentiment. For Q1e, we are 7% below consensus on adj. EBIT due to recent adverse FX moves and headwinds from M&A, as well as some non-recurring costs. We have lowered our 2025–2027e adj. EBIT by 6% on FX and slightly lower margin assumptions.
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