Jefferies expects green transition to create demand for consultancy services

Sweco AB (publ)

03/09/2024 09:47

** Jefferies starts coverage of Swedish engineering
consultancies Sweco  SWECb.ST  and Afry  AFRY.ST  with "hold"
and "buy" respectively, saying the green transition is likely to
create demand for consultancy services    
    ** "Sweco is well placed to benefit from strong underlying
market trends", the broker says, but notes that favourable
prospects appear to be already priced in
    ** Of the two, Jefferies prefers Afry  AFRY.ST  on "more
attractive valuation metrics", saying shares trade at a 20%
discount to its historical average and at a 43% discount to
Sweco 
    ** "Recent improvement measures to strengthen the margin
profile, should close the unwarranted valuation gap versus
peers" the broker says
    ** Jefferies sets a PT of SEK 180 for Sweco and SEK 270 for
Afry
    

 (Reporting by Tilla Sjaavaag and Agnieszka Olenska)
 ((tilla.sjaavaag@thomsonreuters.com))