Kepler Cheuvreux ups AF Gruppen to 'buy' on signs on market recovery

Af Gruppen ASA

01/09/2025 11:31

** Kepler Cheuvreux upgrades contractor and industrial group AF Gruppen AFGA.OL to "buy" from "hold" and raises its PT by 12.5% to NOK 180, citing signs of recovery and a big discount to the stock price

** "After two challenging years of negative or muted growth, we see signs of market improvement and believe the market may be bottoming out, supported by a strengthening backlog," it says

** The broker notes the clear Q2 beat on the Norwegian group's sales, EBIT and EPS versus consensus and the broker's estimates, helped by a strong performance in the Civil Engineering unit

** It adds the stock trades at a "historical discount", expecting it to strengthen on multiples as market conditions improve

** Up to Friday's close, the shares were up 9.3%​ YTD

(Reporting by Mata Frackowiak)

((marta.frackowiak@thomsonreuters.com))