Analyst Note
| Matthew Donen, CFA |Narrow-moat Sandvik delivered a decent set of fourth-quarter results, which topped our top-line expectations due to a SEK 2.9 billion contribution from acquisitions. Full-year revenue growth of 15% includes a 6% contribution from acquisitions, which was largely offset by unfavorable currency movements. Sequential order intake growth in the fourth quarter combined with management noting a continuing positive trajectory in January gives us reason to believe there are still legs to the economic recovery. We maintain our SEK 193 fair value estimate and view shares as fairly valued.