Alfa-Laval's (OTCPK:ALFVY) shares have corrected sharply since my last update
on the company, with the shares down more than 20% on what has been a
pretty broad-based downturn for European industrials. Although there are
some valid concerns about Alfa’s business mix in 2019 and the need for
higher capex spending to support a surge of scrubber orders, there
aren’t enough company-specific issues here to think this is more than a
broad-based re-rating.
I thought Alfa-Laval wasn’t
as appealing of an investment prospect back in July, but I didn’t
exactly expect the sell-off we’ve seen in the market since then. While
the valuation is definitely more interesting now, there are a lot of
other industrials getting cheaper now and I’d be careful about stepping
in front of this current market downturn. Still, as one of the better
late-cycle names I know, I think this is a name to look at going into
2019.
Click here for more:
Market Worries Overshadowing Ongoing Strength At Alfa-Laval
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