Assa Abloy: shares slip after disapponiting organic growth.
(CercleFinance.com) - On Friday Swedish lock maker Assa Abloy posted a lower-than expected increase in third-quarter organic growth, which has sent the shares down over 2% in Stockholm.
Q3 operating income (Ebit) rose by 2% to 3.08 billion Swedish kronor from a year-ago (3.02 billion Swedish kronor), with the group's operating margin down to 16.7%, compared to 16.8% in Q3 2016.
Net sales increased by 3% to 18.5 billion Swedish kronor, with organic growth of just 3%.
"Organic growth missed due to the US non-residential construction market slowdown and industry-wide project delays due to labour shortages," Liberum analysts explained in a research note.
The British investment bank - which reiterates its "sell" rating on the stock with a target price of 157 Swedish kronor - points out that the stock's P/E of 22x represents a 27% premium relative to its sector.
On the Nasdaq Nordic market, Assa Abloy shares are currently down 2.3% at 176 Swedish kronor.
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