Alfa Laval's Resiliency Back In The Share Price

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About: Alfa Laval AB (publ) (ALFVY), Includes: FLOW, ITT
by: Stephen Simpson, CFA
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Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst
Summary

Alfa Laval shares have rebounded nicely, but management is expecting greater end-market headwinds in 2020.

Management continues to focus on products that deliver meaningful benefits to customers in terms of energy efficiency, sustainability, and productivity.

Marine could see a pickup in new shipbuild orders, but Energy is likely to see more headwinds from oil/gas and chemicals, while Food/Water muddles along.

Alfa Laval shares looked priced for a return on par with other high-quality industrials, but I consider it more a "buy on dips" idea at this price.

There are some stocks out there that always (or almost always) get the benefit of the doubt when it comes to valuation – names like Atlas Copco (OTCPK:ATLKY) and Danaher (DHR)