Aktiespararna has issued a buy recommendation for investment company Bure with a target price of SEK 297. Following several disappointments within a concentrated portfolio, returns have been sluggish. Aktiespararna's analysts note a performance of barely 5 percent over three years, compared to 49 percent for the index.
'However, we see signs that a bottom has been reached and, combined with an attractive discount to NAV of 10%, we find the stock compelling,' they write.
Analysts anticipate positive developments across various holdings. Mycronic is performing strongly, Silex is being valued higher, and Vitrolife is showing improved profitability.
'Investing in Bure is largely a bet on Mycronic, given that it accounts for such a significant portion of the net asset value. Should performance falter there, Bure will follow suit. At present, however, there is little to suggest such a scenario.'
Analysts see a percentage upside of approximately 11.5 percent.
Bure Equity AB is a Sweden-based investment company. The Company specializes in long-term owning, developing, as well as disposing listed and unlisted operating entities. Its holding portfolio comprises eight firms: Cavotec, an engineering group that delivers power transmission, distribution and control technologies to a range of areas; MedCap, which owns and develops companies involved in the Life Science sector; Mycronic, which designs and manufactures laser-based pattern generators that are used in the flexible electronics production; PartnerTech, providing product development, as well as production, logistics and aftermarket services; Vitrolife, a developer and producer of solutions for fertility treatment; XVIVO Perfusion AB, which focuses on organ, tissue and cell preservation in relation with transplantation; Investment AB Bure, which owns and manages leasing of locomotives; and Mercuri International, which offers sales and management training consultancy.
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