Jefferies ups Assa Abloy to 'buy' on emerging signs of recovery

Assa Abloy AB

27/05/2025 09:26

** Jefferies raises Assa Abloy ASSAb.ST to "buy" from "hold", estimating that around 30% of the world's biggest lockmaker's business is at a cyclical low but shows signs of gradual recovery

** Nordics are set to rebound after six consecutive rate cuts, U.S. residential market seems to be stabilising, and the Q3 2024 order rebound in loading docks sets stage for revenue recovery from Q2 2025, the broker says

** U.S. non-residential revenue looks set to grow in a low to mid-single digit percentage over the next 12-18 months, driven by its specification writing activities, it adds

** Assa Abloy is well positioned to stand tariffs' impact, with only 10% of the materials and components that it uses in the U.S. currently sourced from China, Jefferies says

** A possible sale of its non-core Pfister brand could also unlock value, the broker says

** Out of 22 analysts that cover Assa Abloy, 12 rate it "strong buy" or "buy", ​nine rate "hold" and one "sell"

 (Reporting by Agnieszka Olenska)

 ((Agnieszka.Olenska@thomsonreuters.com;))