Northern Lights

Securitas (Buy, TP: SEK177.00) - New CEO to accelerate transition

Securitas new CEO Magnus Ahlqvist presented his first quarterly report, showing accelerating organic growth but weak earnings leverage, the same pattern of late. The Technology Solutions growth case, now detailed on a quarterly basis, progressed strongly (+20% YOY) and the new CEO wants to accelerate the company’s transition. We have raised our forecasts slightly (mainly FX driven) and reiterate our BUY recommendation, increasing our target price to SEK177 (175).

Northern Lights

Securitas (Buy, TP: SEK175.00) - New CEO Ahlqvist’s first quarter

With new CEO Magnus Ahlqvist presenting his first quarterly report (due on 2 May), the stage seems set for a strong show with, in our view, easy comps and support from acquisitions and FX. The Technology Solutions growth case will now be detailed on a quarterly basis, giving better exposure to the most important value driver. FX changes have boosted our 2018–2020e EPS by 6–7% and we have raised our target price to SEK175 (165). We reiterate BUY.

Northern Lights

Securitas (Buy, TP: SEK165.00) - Operating leverage improving

Departing CEO Alf Göransson presented his final quarterly report showing a promising recovery in Europe but hampered by temporary extra costs in the US and Argentina, with underlying operations basically matching our expectations. The 2018 macro environment remains supportive for organic growth with the higher profit-margin Technology Solutions area delivering the highest growth rates (+19% in 2017). We reiterate our BUY recommendation and SEK165 target price.

Vision 2020 clouded short-term

Securitas (SECUB SS, Buy) - Vision 2020 clouded short-term (19 pages)

Focus on H2 opportunity

Securitas (SECUB SS, Buy) - Focus on H2 opportunity (19 pages)