Pareto expects a neutral share-price reaction in Autoliv today following its third-quarter report, in which sales were weaker than expected but profitability was higher.
Sales were 2 percent below expectations and organic growth was minus 1 percent versus the expected zero percent. The adjusted EBITA margin of 9.7 percent was meanwhile around 0.5 percentage points higher than expected. Adjusted EBITA exceeded consensus by 2 percent and Pareto’s estimate by 4 percent.
Autoliv narrowed its guidance for the full-year adjusted EBITA margin to 10.5 percent from the previous 10.5–11 percent, which according to Pareto is fully in line with expectations.
Pareto has a buy recommendation and a price target of SEK 1,300. The share is falling by just over 4 percent to SEK 1,107.
