Berenberg initiates Bergman & Beving at 'buy' with 'decades of compounding'

Addtech AB

08/10/2025 07:30

** Berenberg initiates coverage of northern Europe-focused industrial group Bergman & Beving BERGb.ST at "buy" with a SEK 380 PT, citing its return to a successful decentralised model

     ** The broker highlights a top-tier leadership team with deep experience from successful peers Addtech ADDTb.ST and Lagercrantz LAGRb.ST, which reinforces the firm's strategic direction

     ** Analysts sees the company's turnaround as well underway, forecasting underlying margins to improve toward 15% as it exits legacy low-margin businesses

     ** Berenberg believes Bergman & Beving has "decades of compounding ahead" and a long runway for growth due to its smaller size compared to its more established peers

     ** A re-rating is forecast as the valuation gap to peers closes, with the stock trading at a discount on its 2025 enterprise value to earnings (EV/EBITA) ratio, says the broker

** Out of 4 analysts that cover Bergman & Beving AB, two rate the stock "strong buy" or "buy" and ​two rate "hold" - LSEG data

 (Reporting by Agnieszka Olenska)

 ((Agnieszka.Olenska@thomsonreuters.com;))