In what has been a strong quarter for multi-industrials, the breadth and depth of Alfa Laval’s (OTCPK:ALFVY) end-market improvements still stand out. There are some softer spots here and there, but core markets like food/beverage and HVAC-R remain very strong, while marine, process industries, and oil/gas are already coming back.
Alfa shares have jumped almost another 40% since my last update in early April, handily trouncing other industrial names over that period. While I think Alfa was and is a quality multi-industrial that institutions wanted to find excuses to own (and beat-and-raise quarters provide that), I also think Alfa is benefiting from a shift away from shorter-cycle markets toward longer-cycle stocks. It’s going to take significant additional upgrades to Street estimates to justify today’s price over the long term, but in the short term this is a hot hand in the multi-industrial space.
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Alfa Laval: Impressive Order Growth, Benefitting From Rotation To Longer-Cycle Names
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