Berenberg starts coverage of Alimak with 'buy' on favorable megatrends
01/03/2024 14:57
** Berenberg initiates coverage of Sweden-based vertical
access solutions manufacturer Alimak Group ALIG.ST with "buy"
rating, citing the company's market-leading status and boosted
demand
** Broker says the group's market-leader status in its
construction and industrial divisions provides resilience to
growth and margins
** Says the demand for Alimak's products gets a boost by
long-term megatrends including continued focus on workplace
safety and increased building at height
** It expects steady single-digit growth and margins of
close to 18% and 23% for 2024-26E in the construction and
industrial divisions, respectively
** Believes the margin-turnaround story in co's facade
access and wind divisions will drive a 200bp improvement in
adjusted EBITA margin to 18.2% by 2026E
** Starts coverage with a TP of SEK 130, implying an upside
of around 40% from its last close
(Reporting by Elviira Luoma)
((Elviira.luoma@thomsonreuters.com))