Swedish industrial machinery to continue seeing weak demand - BNP Exane Paribas

Alfa Laval AB

06/12/2023 10:47

** BNP Exane Paribas cuts Sweden's Epiroc  EPIRa.ST  to
"underperform" from "neutral" as it forecasts little earnings
growth for the next two years, and sees near-term order weakness
    ** The broker sees risk of market share losses for Epiroc,
yet it trades at relatively high valuation multiples 
    ** It cuts peer Alfa Laval  ALFA.ST  to "neutral" from
"outperform" expecting demand to cool down in 2024, as
construction market is expected to remain weak
    ** We are 5% below consensus order intake estimates for 2024
for Alfa, the broker adds, and as such does not expect the stock
to outperform when orders start to disappoint 
    ** It upgrades SKF  SKFb.ST  to "outperform" from "neutral"
saying the company is close to passing through its weakest
quarter for y/y organic growth, and adds that by end of 2024,
growth is likely to be back in the positive territory
    ** The broker outpoints that 2025 should be a "solid
recovery year" for SKF, forecasting adjusted EPS in 2025 to be
16% higher than the estimate for 2023 
   
   

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