Assa Abloy: Ideally Positioned To Benefit From an Expanding Industry Profit Pool; Shares Attractive

Assa Abloy shares screen attractively relative to our SEK 320 fair value estimate, which remains unchanged following a transfer of analyst. Our long-term thesis for the global leader in locking and physical access systems remains intact. Specifically, Assa Abloy is best positioned, in our view, to capitalise on the substantive growth opportunity from the increasing acceptance and uptake of electromechanical locking systems currently underway. We think investors presently underappreciate the full extent of the secular growth opportunity in front of Assa Abloy—the clear global locking and physical access industry leader—with shares trading at an appealing 22% discount to our valuation.