On Wednesday, Deutsche Bank adjusted its stock price target for Alfa Laval AB (ALFA:SS) (OTC: ALFVY), a Swedish industrial company, from SEK466.00 to SEK474.00. The firm retained its Hold rating on the stock. The revision comes ahead of the company's third-quarter results, which are scheduled to be released on October 24th.
Alfa Laval, known for its specialized products and engineering solutions, has been performing well, despite facing challenging sequential comparisons in Marine orders and Food & Water (F&W) revenues in the third quarter. The company's Marine division has seen general supportive data, although much of its order growth has been in pumping systems, where contracting data appeared slightly weaker in the third quarter compared to the second.
In the F&W segment, revenues were boosted in the second quarter due to late invoicing, but the underlying growth could be stronger, particularly with a recovery in consumable sales. For the Energy division, Deutsche Bank anticipates a growth in orders, driven by the HVAC segment, although this is not expected to be reflected in revenues just yet.
Deutsche Bank's estimates for Alfa Laval's group orders are aligned with the consensus, but their revenue and adjusted EBITA (earnings before interest, taxes, and amortization) projections are slightly lower. The target price adjustment to SEK474.00 reflects the bank's current outlook on the company's performance and market positioning.
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