JPM ups Hexagon to 'overweight' on improving end markets
BUZZ-JPM ups Hexagon to 'overweight' on improving end markets ** J.P. Morgan upgrades Hexagon HEXAb.ST to "overweight" from "neutral", saying the Swedish industrial technology group's core business positively aligns with improving end markets
** The brokerage expects margin expansion driven by cost control measures introduced by Chairman Björn Rosengren, following his successful playbook at other firms
** Most of Hexagon's end markets are now expansionary with construction revenues growing in the Americas and China due to robust data centre buildouts, JPM notes
** It also identifies unpriced upside in humanoid robotics, an emerging market where the company could secure a European presence worth up to €5 billion ($5.6 billion)
** JPM lifts its PT by nearly 39% to SEK 125, saying the humanoid robotics opportunity is currently "embedded in the equity case with zero value ascribed to it"
** Out of 17 analysts that cover the stock, six rate it "strong buy" or "buy", nine rate "hold", and two "sell", according to LSEG data
($1 = €0.8924)
(Reporting by Marta Frackowiak)