(CercleFinance.com) – Alfa Laval recorded one of the biggest increases in the Stockholm Stock Exchange’s OMXS30 index on Wednesday after a note from RBC which underlines the crucial role that the engineering group is called upon to play in cooling data centers.
In a research note, the Canadian broker explains that it expects data centers to increasingly move towards liquid cooling solutions.
The broker also believes that the Scandinavian heat exchange specialist should also benefit from the resurgence of nuclear energy.
‘We note that these two growth markets – data centers and nuclear power – have until recently only represented niche segments for Alfa Laval,’ says RBC.
From his point of view, these catalysts therefore seem to be ignored by many investors.
In this context, the professional says he has revised upwards his forecast for average annual growth in turnover for Alfa Laval by 2035, now expected at 6.4% compared to 5% previously.
He also says he expects an improvement in the company’s operating margin of 2.4 percentage points over the period, compared to +1.75 points so far, which leads him to consider a future revaluation of the stock.
RBC therefore raises its opinion on the stock from ‘performance in line with the sector’ to ‘outperform’, with a price target raised from 450 to 570 crowns.
Around 4:00 p.m., the stock rose more than 1.5%, marking the fourth largest increase in the index of Swedish star stocks.
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