Nordea raises its recommendation for engineering company Trelleborg to buy (neutral) with a target price of SEK 450.

The analysis describes the company as well positioned to benefit from the recovery in several industrial markets, and is considered to have the capacity for generous dividends going forward, Di reports.

"With strong growth in highly profitable verticals, we expect the ebita margin to approach the 20% target by 2027. In addition, the strong balance sheet enables generous capital distributions to shareholders (we estimate a total dividend yield of around 7% per annum) and add-on acquisitions, which could increase sales by 5% per annum," Nordea writes.

The bank raises its earnings forecasts for 2025-2026 by 6-9 percent.

Trelleborg rises 3.2 percent.