Pareto Securities has upgraded its recommendation for lock manufacturer Assa Abloy to Buy from Hold, while maintaining its price target of SEK 405.
The bank highlights continued stability in the project business despite short-term headwinds from currency fluctuations, waning pricing support, and a softening construction market.
At the same time, macro and interest rate risks persist, which could potentially delay a recovery.
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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