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ARCLK - Arcelik AS News Story

TRY32.86 0.0  0.0%

Last Trade - 09/04/21

Sector
Consumer Cyclicals
Size
Mid Cap
Market Cap £1.99bn
Enterprise Value £2.46bn
Revenue £3.66bn
Position in Universe 20th / 645

BUZZ-Electrolux: Market overestimates margin potential, GS cuts

Tue 8th September, 2020 8:32am
** Shares in Electrolux  ELUXb.ST  slide 3% after Goldman
Sachs cuts the Swedish home appliances maker to "sell" and
lowers price target by 8% to SEK 145, citing headwinds on the
horizon
    ** GS says it believes consensus overestimates the company's
margin improvement over 2020-22 and expects 2021 EBIT to be
about 33% below Infront consensus
    ** The improved volume outlook is well understood by the
market, but Electrolux faces other mounting headwinds, adds GS
    ** The brokerage says raw material and components are the
company's most important cost item and adds raw materials prices
are increasing from Q2 trough 
    ** It also expects FX to be a drag on 2020 and 2021
estimates, despite USD weakness
    ** GS sees resilient pricing, but a less favourable mix
outlook in 2020/21 as consumers trade down, and adds it believes
some regions could see increased competition, i.e. Turkish lira
weakness benefiting Arcelik  ARCLK.IS  
    ** Among the 17 analysts that cover Electrolux, seven rate
the stock "strong buy" or "buy," nine "hold" and one "sell" or
"strong sell"

 ((joanna.wodzicka@tr.com))
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