Bank of Åland sees greatest potential in Hexagon, Sandvik, SKF and Volvo in the engineering sector
In an analysis, the bank points out that in many cases it seems difficult to justify the same positive contribution from rising profit multiples as in the past ten years.
The challenge in the coming years will probably be more to defend and improve profitability from current levels. The Bank of Åland generally has a positive view of demand in the next few years. Valuation models indicate a price potential of about 15 percent for the sector.
"Based on our analysis, we currently see the greatest 6-12 month potential in Hexagon, Sandvik, SKF and Volvo among Swedish companies and in Kone, Metso and Valmet among Finnish companies," it says.
Limited upside is seen for Atlas Copco, Nibe and Wärtsilä from current levels.
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