Assa Abloy: Oddo BHF remains a buyer after profit warning

(CercleFinance.com) - Oddo BHF has reinstated its "buy" rating on the Assa Abloy stock, albeit trimming its target price to 207 Swedish kronor, in the wake of the group's 2% reduction of its 2018 and 2019 EPS estimates for the lock manufacturer.


While maintaining its organic growth forecasts for these two years, the broker has cut its estimates for the group's operating margin, following a warning for China, which has (slightly) reduced the group's outlook.

The broker judges that the share's sharp correction on Friday, given the forthcoming reductions in estimates that are ahead, even though it recognises that the momentum for improvements in its margin have been delayed, which penalises its momentum, the analyst judges.



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