Handelsbanken raises its recommendation for environmental technology company Nederman to Buy from Hold and raises its price target to SEK 160 (140), according to an analysis.
The bank expects the period of declining order intake to be nearing its end and forecasts organic order growth of 11 percent in the third quarter.
Higher volumes and recovered margins are expected to drive annual earnings growth of around 18 percent going forward. Handelsbanken also considers the share undervalued, as it trades at a discount of approximately 10 percent to its historical five-year average.
“Given better momentum going forward, we believe the share deserves a higher valuation,” the bank writes.
