Assa Abloy initiated with an Underweight at Barclays

Barclays analyst George Featherstone initiated coverage of Assa Abloy with an Underweight rating and SEK 274 price target. The construction market backdrop is weak but the market appears to be pricing in a strong recovery, the analyst tells investors in a research note. The firm sees 7%-8% downside to consensus EBIT estimates for Assa Abloy. It is cautious on the speed of recovery in construction markets and thinks consensus estimates are too optimistic on demand recovery for Assa.