Diverging trends drive different outcomes for marine equipment makers - MS

Alfa Laval AB

11/11/2024 12:55

** Morgan Stanley sees diverging ship ordering trends across
sub-segments driving different 2026 sales growth outcomes for
marine equipment makers 
    ** Cutting Sweden's Alfa Laval  ALFA.ST  to "underweight"
from "equal-weight", it forecasts the 2026 growth to fall below
sector average given the company's higher exposure to weakening
Tanker segment
    ** Alfa Laval's new tanker ship orders in Q3 are down 66%
quarter-on-quarter, resulting in orders starting to slow
sequentially, the broker says
    ** The broker ups Finland'a Wartsila  WRT1V.HE  to
"equal-weight" from "underweight" and hikes PT by 3.5% to EUR
17.6, seeing organic revenue growth above sector average in
2025-26
    ** "For Wartsila, cruise and gas carriers are relatively
larger segments, but here the lag between ship orders and
Wartsila orders has extended at least 1, if not 2 years," MS
says
    ** It adds still thinks Wartsila's Marine orders will grow
in 2025 by 3.5%, whereas it expects Alfa Laval's Marine orders
to decline by 14% in the same year

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))