Assa Abloy: shares lower after downgrade

(CercleFinance.com) - Assa Abloy shares are trading slightly lower on Wednesday after Barclays downgraded the Swedish lockmaker from "overweight" to "equal weight.
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In a note on European capital goods companies, the broker cites a "fragile demand environment" and an "extreme" value/growth valuation differential in the sector.

The so-called "quality growth" stocks in particular seem vulnerable, the broker said, adding that this includes Assa Abloy, after increasing by 35% year-to-date, which leaves just 4% upside in its 220-Swedish kronor target price, which the broker is leaving unchanged.

The Assa Abloy share is currently down 0.4% at 211.7 Swedish kronor.

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