Barclays has upgraded its recommendation for the lock company Assa Abloy to overweight, up from its previous rating of equal weight. The price target has been significantly increased from 377 to 466 kronor.
Barclays justifies the upgrade by pointing to an ongoing cyclical recovery in the European construction sector, as well as the company benefiting from new regulations, according to Reuters.
Barclays is also raising its forecasts for adjusted operating profit by 2-6 percent for the years 2026 to 2028. The research firm now sees a good buying opportunity in the stock.
Assa Abloy AB is the world's leading manufacturer of locking systems. Net sales break down by family of products as follows:
- security doors and systems (45.3%): shielded and automatic doors, magnetic card locking systems (for use by hotels) and security systems for parking meters, slot machines), etc.;
- electronic and electromechanical locking systems (31.2%): access codes, electronic locks, etc.;
- mechanical locking systems (23.5%): locks, padlocks, bolts, etc.
Net sales are distributed geographically as follows: Europe (32.9%), North America (53.2%), Asia (6.2%), Oceania (3.5%), Central and South America (3.1%) and Africa (1.1%).
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