Northern Lights

Veoneer (No_rec, TP: SEK) - Discontinuing coverage

Discontinuing coverage Following its acquisition by Qualcomm and SSW Partners, we have discontinued coverage of Veoneer. Our last published recommendation, target price and estimates should no longer be relied upon.

Veoneer - Terminating coverage

ABGSC ceases coverage of Veoneer HOLD is our final recommendation SEK 320 is our final target price

Veoneer (Hold, TP: SEK340.00) - Trading 5% below Qualcomm bid

We have lowered our 2022–2023e net sales by 7–3% to factor in a slower IHS LVP recovery through 2022. We still see a high likelihood that Qualcomm and SSW Partners’ USD37/share all-cash bid will gain approval; thus, we reiterate our HOLD, but have raised our target price to SEK340 (320) to reflect recent USD/SEK movements.

Powerpoint Sector Report - The Capital Goods Data Miner – January 2022

Going into Q4 reporting season, we see strong demand signals across most end-markets and geographies. Supply chain issues hold back deliveries and push up costs, but the situation should not be worse than in Q3. Cyclical value stocks have regained some ground but continue to trade at a near all-time-high discount to quality and growth. The sector has an unusually high relative valuation which limits upside despite the strong earnings outlook; we recently downgraded ABB, Epiroc and Wärtsilä Our k...

Powerpoint Sector Report - The Capital Goods Data Miner -- December 20...

We see strong demand signals across most end-markets and geographies, with a China slowdown in certain segments as the notable exception. Supply chain issues hold back deliveries and push up costs, but the situation should not be worse than what we saw in Q3. Cyclical value stocks have rebounded slightly but continue to trade at a near all-time-high discount to quality and growth. Our key long ideas are: ABB, Atlas Copco, Trelleborg, Volvo We are cautious on: Epiroc, FLSmidth, Nokian Tyres, Sand...

Powerpoint Sector Report - The Capital Goods Data Miner - November 202...

We see strong demand signals across most end-markets and geographies, with a China slowdown in certain segments the notable exception. Supply chain issues are holding back deliveries and pushing up costs, but the situation should not be worse than what we saw in Q3. Cyclical value stocks have rebounded slightly but continue to trade at a near all-time-high discount to quality and growth Our key long ideas are: Assa Abloy, Electrolux, Metso Outotec, Volvo We are cautious on: FLSmidth, Nokian Tyre...

Powerpoint Sector Report - The Capital Goods Data Miner - October 2021

We see strong demand signals across almost all end-markets and geographies, with a China slowdown in certain segments the notable exception. In particular, energy-related sectors, as well as semi-conductors, have upgraded investment plans recently. Quality and growth stocks continue to have an unusually high premium to deep-cyclicals, and we find some interesting names in both camps Our key long ideas are: Assa Abloy, Electrolux, Volvo We are cautious on: FLSmidth, Nokian Tyres, Sandvik

Veoneer Minor model adjustments

Veoneer (VNESDB SS, Hold) - Minor model adjustments (22 pages)

Sector Report - Selling is easy, delivering is hard

Q3’21 report due on 21 October Estimates adjusted for Dodge divestment Maintain BUY and SEK 350 target price

Veoneer - Qualcomm/SSW offer of USD 37 per share

Q3’21 report due on 26 October Estimates adjusted for weaker LVP Maintain HOLD, raise TP to reflect Qualcomm/SSW offer

Powerpoint Sector Report - The Capital Goods Data Miner – September 20...

Leading indicators edged slightly down, but indicate some upside to volume assumptions. Metal prices have held steady on high levels and indicate continued support for mining equipment. Also, semiconductor, oil and marine markets show robust demand signals. The sector has de-rated slightly and is on normal levels relative to the broader market. Supply chain issues and higher raw material costs pose a threat to ATH margin expectations though, so pricing power will be a strong differentiator Our k...

Sector Report - ABGSC Capital Goods Seminar

Veoneer - Down to HOLD after bid from Magna

Magna bids USD 31.25 per share (SEK 271) Q2 report in line, FY’21 guidance mostly reiterated Down to HOLD, competing bids can’t be excluded

Veoneer - Takeover bid from Magna International

Bid at USD 31.25 per share (SEK 271), 56% premium Acceptance the board and ~40% of the shareholder base Competing bid can’t be excluded

Sector Report - Great demand but costs to hold back margins

Q2’21 report due on 22 July Maintain BUY with SEK 330 target price

Veoneer - Sales acceleration continues

Q2’21 report due on 23 July New model launches to drive growth Keep BUY with SEK 300 target price

Powerpoint Sector Report - The Capital Goods Data Miner – June 2021

3rd month of PMIs >60, growth in Marine and semicon Our key long ideas are: ABB, SKF, Trelleborg We are cautious on: FLSmidth, Kone, Nokian Tyres

Powerpoint Sector Report - The Capital Goods Data Miner - May 2021

PMIs >60, growth in Marine, strong semiconductors Our key long ideas are: ABB, SKF, Trelleborg We are cautious on: FLSmidth, Kone, Nokian Tyres

Sector Fast Comment - Strong reports, but sector performance -2%

Q1 sector adj. EBIT +11% vs. cons, +6% ex. Elux/Volvo ABGSCe raised ’21e-’22e EBIT by 4% and 3% since 14 Apr. Since 14 April the sector is -2%, ’21e EV/EBITA at 16.6x