JPM reinstates Alfa Laval at 'neutral' on few catalysts ahead

Alfa Laval AB

04/12/2025 12:27

** J.P. Morgan reinstates Swedish industrial technology group Alfa Laval ALFA.ST to "neutral" from "underweight", seeing few catalysts with its estimates now in line with consensus

** The brokerage says the stock's significant underperformance has now priced in demand weakness from its Ocean segment, which experienced an exceptionally strong 2024

** While the shift to liquid cooling in data centres is a growth spot, JPM notes this business is too small and "will not move the needle"

** JPM sets PT at SKK 509, implying 13% upside, but sees 2026 EPS growth consensus of around 6% "uninspiring" in the current sector context

** Shares of Alfa Laval rise 4% at 1225 CET

(Reporting by Agnieszka Gosciak-Rabalska)

((Agnieszka.Gosciak@thomsonreuters.com))