Jefferies starts Aalberts with 'buy' on accelerating portfolio optimisation

Aalberts

19/01/2022 08:40

** Jefferies initiates industrial engineering group Aalberts
 AALB.AS  with "buy", citing higher revenue growth and increased
profitability on accelerating portfolio optimisation
    ** The broker says Aalberts is a multi-year compounder, 
with an impressive M&A track record, structural growth in
end-markets, and a strong sustainability focus
    ** It notes the group operates in "attractive growth
markets", such as sustainable transportation and semiconductors
efficiency, which shows double-digit growth driven by strong
microchip demand
    ** Jefferies sees Aalberts' profitability to further improve
as the company accelerates its portfolio optimisation by
divesting low-growth and/or low-margin businesses, which will be
"more than offset" by M&A
    ** It points to the company's sustainable development goals
increasing to over 70%, with Aalberts targeting a 30% reduction
in energy consumption by FY26 and expects to be carbon-neutral
by 2050 at the latest
    ** Jefferies' PT of EUR 72 represents a 30% upside to
Aalberts' Tuesday close of EUR 55.36

 (Reporting by Federica Mileo)
 ((Federica.mileo@thomsonreuters.com))