Northern Lights

Loomis (Buy, TP: SEK380.00) - US goes from strength to strength

Loomis’ US operation once again excelled, and more than compensated for short-term challenges in Europe looking at integration of dilutive acquisitions and rightsizing in France and Sweden. We reiterate our BUY and have raised our target price to SEK380 (375); however, management focus is fully on meeting the ambitious targets for 2021, indicating further upside.

Northern Lights

Loomis (Buy, TP: SEK375.00) - FX inflating forecasts again

The weak SEK implies a positive translation effect for Loomis and has edged up our forecasts by 4–5% ahead of the Q1 report due on 3 May, and we find our Q1 EBITA forecast 11% ahead of consensus. With four acquisitions now completed since the CMD, the move towards realising the 2021 goals is off to a good start but delivery is still far from fully discounted, looking at current valuation. We continue to like the US growth story, cash-generating financial profile and potential for value-creatin...

Northern Lights

Loomis (Buy, TP: SEK375.00) - SafePoint the business driver again

The shares are down 8% post the Q4 release, suggesting mounting problems. However, we see a company purposefully correcting issues, with the Q3 hiccup for SafePoint already resolved (record Q4 deployment) and corrective measures already taken in France for 2018 normalisation. Management’s focus is now moving to meeting the ambitious targets for 2021. We reiterate our BUY and SEK375 target price, with meeting the 2021 targets indicating further upside.

Expecting bar to be raised higher

On 28 September, Loomis hosts its first CMD since 2014. We believe it could be a positive share price catalyst as new targets are likely to be ambitious and the company has a strong track record of meeting similarly ambitious targets. More details on the roll-out of the highly profitable SafePoint concept in the US and Europe as well as generating strong returns in cashless economies should also build further confidence in the long-term case. We reiterate our BUY recommendation and SEK345 target...

Upcoming milestone event

Loomis (LOOMb SS, Buy) - Upcoming milestone event (20 pages)

Transforming the Cash Ecosystem

Loomis (LOOMb SS, upgrade to Buy) - (24 pages)

Transforming the Cash Ecosystem

Loomis (LOOMb SS, upgrade to Buy) - (24 pages)