Barclays ups Assa Abloy, seeing earnings inflection

Assa Abloy AB

03/03/2026 13:57

** Barclays upgrades Swedish lockmaker Assa Abloy ASSAb.ST to "overweight" from "equal-weight", citing a cyclical recovery in the European construction sector and new regulations

** The broker sees supportive housing permit data in France and Germany, and says it expects the Europe, Middle East, India and Africa (EMEIA) division's margin to recover to above 16% by next year

** The EU's updated NIS2 cybersecurity framework will accelerate a shift to digital access, adding an estimated 0.5% to group organic growth, the brokerage says

** Barclays calls the stock's recent de-rating "unjustified" and sees this as a "compelling" entry point, given the company's defensive quality and above-average earnings growth outlook

** Consequently, the broker raises its adjusted EBIT estimates for 2026-2028 by 2-6% and lifts its PT on the stock by 24% to SEK 466

** Out of 21 analysts who cover the stock, 12 rate it "strong buy" or "buy", eight "hold" and one "sell", according to LSEG data

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))