Alfa Laval AB, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Max Yates from Morgan Stanley maintained a Sell rating on the stock and has a SEK420.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Max Yates has given his Sell rating due to a combination of factors impacting Alfa Laval AB’s performance. Despite the company’s strong execution on margins, particularly in the Marine and Food and Water divisions, the overall order intake has been disappointing. The third quarter of 2025 saw a slight miss in order expectations, with a book-to-bill ratio of less than one, indicating a lack of momentum in new orders.
Furthermore, guidance for the fourth quarter suggests flat demand, which does not inspire confidence for significant growth. The Marine division, in particular, has not yet shown signs of recovery, missing order expectations by 2%. Additionally, the valuation appears demanding, with a 21x price-to-earnings ratio for 2026, which Max Yates believes is not justified given the subdued market momentum. These factors combined lead to the conclusion that Alfa Laval AB’s stock is not expected to outperform, warranting a Sell rating.
According to TipRanks, Yates is a 4-star analyst with an average return of 11.1% and a 63.48% success rate. Yates covers the Industrials sector, focusing on stocks such as Siemens, Schneider Electric, and Siemens Energy.