Carnegie cuts estimates, but ups Ambu due to price drop

Ambu A/S

23/03/2022 10:02

** Carnegie raises Danish medical device maker Ambu
 AMBUb.CO  to "hold" from "sell" due to plunging stock price
    ** The brokerage says it believes that Ambu is transferring
more volumes to air freight due to recent COVID lockdowns in
China and war in Ukraine, which prompts the broker to cut EBIT
margin forecast for 2021/22 to 6.8%
    ** "Ambu is not only facing cost inflation in transport, but
also from rising raw material prices and wage inflation," it
adds
    ** However, provided that the company continues to grow
revenue by 10–20% per year, profitability will eventually
improve within 4–5 years, Carnegie says 
    ** Ambu has cut its earnings guidance four times since last
July, most recently saying it expects FY EBIT margin of 7% or
higher  urn:newsml:reuters.com:*:nL8N2UJ21I
    ** Ambu shares rise 3% in morning trade
    ** Out of 9 analysts that cover the stock, three rate it
"strong buy" or "buy", ​two rate it "hold" and four​ rate it
"strong sell" or "sell"


 (Reporting by Jagoda Darlak)
 ((jagoda.darlak@tr.com))