Stifel assesses Swiss capital goods in 'tricky' construction markets

Arbonia AG

30/06/2023 09:21

** Stifel reassesses Swiss capital goods companies based on
tightening energy efficiency laws and weaker construction
forecasts in Europe
    ** Recent data shows commercial and infrastructure markets
are set to expand slightly in 2023-2025, the broker says, while
new residential construction is the weakest spot especially in
Germany
    ** Given increasing market volatility and the opportunity to
profit from stricter emissions legislation, the brokerage raises
Belimo  BEAN.S  to "buy" from "hold"
    ** Stifel says it is turning more positive on the "highly
defensive Swiss E(SG) champion", highlighting Belimo's strong
commercial/public exposure
    ** It adds Belimo's YTD share price underperformance is
"operationally not justified"
    ** Stifel cuts Arbonia  ARBNO.S  to "hold" from "buy",
saying it demonstrates the weakest short-term operational
performance due to its high exposure to Germany and various
activities without energy efficiency aspects
    ** Stifel also points to Arbonia's much higher net debt
starting position and double-digit lower estimates for FY
2023/24 EBIT than seen by market consensus
    ** Shares in Belimo are up 3.9%, topping the Swiss mid-cap
index  .SMIM ; Arbonia shares are down 1.2%

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))