On Friday, BofA Securities revised its stance on Aalberts Industries NV (AALB:NA), upgrading the stock from Underperform to Buy and increasing the price target to €41.00, up from the previous target of €35.50. The firm anticipates a positive shift in the markets that make up over 65% of Aalberts' sales by 2025, which is expected to contribute to favorable earnings momentum and lead to a higher valuation of the company's shares.
Aalberts Industries has experienced a 27% relative decline against the SXNP year-to-date, attributed to challenges such as decreased automobile production, slow general industrial activity, and persistent softness in the construction sector. These factors have driven the company's stock to multi-year lows, excluding the pandemic period.
BofA Securities has increased its earnings estimates for Aalberts by 4% for the year 2026 based on adjusted EBITA, positioning them 2% above the consensus for the 2026 forecast. This revision underpins the new price objective of €41.00.
The valuation of Aalberts Industries by BofA Securities is based on a 25% discount to the sector's target multiple, which remains unchanged. The target multiple for 2026 expected EV/EBITA has been set at 12 times (an increase from 11 times), and this figure is discounted back 12 months to arrive at the present price objective.
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