Kepler ups Electrolux Professional seeing earnings growth ahead

Electrolux Professional AB (publ)

02/02/2022 15:09

** Kepler Cheuvreux upgrades Electrolux Professional
 EPROb.ST  to "buy" from "hold", raises target price by 7% to
SEK 75, expecting strong earnings per share (EPS) growth going
forward
    ** On the back of solid Q4 results, the brokerage hikes EPS
forecast for the Swedish provider of food service, beverage and
laundry solutions by 3-6% over 2022-2023
    ** It says that although the company is set to see a hit of
SEK 60-70 mln year-on-year due to cost inflation, it is time to
look beyond that as it is well flagged for Q1  
    ** Post Q1, the company should experience significant
positive impact from price, volumes, and M&A, Kepler says, which
should take margin up by more than 200bps to 11.3% in 2022 and
still show significant upside to the company target of 15%
    ** According to the broker, any further M&A could easily be
financed by the strong cash generation
    ** Out of seven analysts that cover Electrolux Professional
stock, four rate it "strong buy" or "buy", two rate it "hold"
and one rates it "sell"
    

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))