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Husqvarna (Buy, TP: SEK100.00) - Time to do a strategic review of Cons...

The Consumer Brands division represents c3% of our SOTP value for Husqvarna. Still, the company ends up talking about it most of the time as the division has ongoing very weak performance. We believe it is time to do a strategic review of this division as something major needs to happen. Looking at the other c78% of the group, it achieved c6% organic growth and c15% EBIT margin. This part of the business is in our view highly underappreciated and is why we keep our BUY recommendation and SEK100 ...

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Husqvarna (Buy, TP: SEK100.00) - Not just about the weather

March was rather chilly in central and northern Europe, which is likely to have hurt the Husqvarna division’s sales as some retailers/dealers await warmer weather before stocking up. However, we believe this should be offset by further expansion by Gardena, growth for robotic lawnmowers, and still-solid demand for Construction Products. We believe the long-term structural growth story is intact and reiterate our BUY and SEK100 target price. The Q1 results are due out on 24 April.

Northern Lights

Husqvarna (Buy, TP: SEK100.00) - Becoming a robot-centric company

In this report, we look at the unique potential for robotic lawn mowers. The category has already c50% of the market in Sweden, which compares to virtually zero penetration in the large North American market as well as for commercial applications. Husqvarna’s robotic lawn mower sales could grow by c25%/year in the next five years, to represent c20% of group sales by 2022e. We keep our BUY recommendation and SEK100 target price and see this as a long-term appealing story.

Northern Lights

Husqvarna (Buy, TP: SEK100.00) - Many more years of structural growth ...

The transformation of the lawnmower market to robotics has only just begun. Penetration levels of robots in Europe are still low, and Husqvarna is planning its first real push into the US in 2018 (larger lawnmower market than Europe) and has launched the first robots on the commercial side. We thus see several years of 20%+ annual growth for the product category. We also see good growth prospects for the Construction division and many good years to come for Gardena. We reiterate our BUY and have...

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Husqvarna (Buy, TP: SEK95.00) - What to expect in Q4

Husqvarna (HUSQB SS, Buy) - What to expect in Q4 (15 pages)

Waiting for the next season

We reiterate our BUY recommendation and SEK95 target price, as we are encouraged by the growth in robotic lawnmowers (we expect a push into the North American market next year) as well as by solid earnings growth for Gardena and Construction Products. However, we do not expect Q3 (results due at 08:00 CET on 20 October) or Q4 to be especially exciting, as earnings should remain burdened by the weakness in Consumer Brands.

Undemanding valuation

Husqvarna (HUSQB SS, Buy) - Undemanding valuation (20 pages)