- (PLX AI) - Atlas Copco, Sandvik and Electrolux were among gainers today in Stockholm as Danske Bank analysts reiterated buy recommendations, saying Swedish capital goods stocks may be at a turning point.
- • The stocks have attractive entry points after multiples contraction, with a positive view based on a potential recovery in China in the second half of the year, significant FX tailwind and potential for margin expansion in 2023, Danske said
- • FX tailwinds could boost adjusted EBIT by 7-19% over the coming five quarters, the analysts said
- • Most of the Swedish capital goods companies have a significant production footprint in Sweden and the EU, which means that transaction effects should be large, Danske said
- • Meanwhile, as spot prices for metals, rubber and freight start to decline, companies with pricing power should be able to keep their prices stable next year and enjoy margin expansion: Danske