Nordea has reiterated its 'Hold' recommendation for industrial conglomerate Lifco, assigning a multiple-based fair value of 335 kronor, up from 323 kronor.
The bank expects Lifco to deliver a solid report, with sequentially improved organic growth and an EBITA increase of 8 percent year-on-year, driven by a robust M&A pace totaling approximately 2 billion kronor so far this year.
"Given that over 90 percent of acquisitions this year have occurred within the Systems Solutions segment, combined with uncertainty regarding the outlook for the contract manufacturing sub-segment, we believe it is difficult to predict short-term results. This, together with a valuation at 23.5x 2026E EV/EBITA, suggests better investment opportunities elsewhere in the sector, such as Indutrade (buy) and Addlife (buy)," the bank stated.
