Citi upgrades Ariston on 'undemanding' valuation, improving market

Ariston Holding

04/06/2024 07:47

** Citigroup upgrades Italy's Ariston Holding  ARIS.MI  to
"buy" from "neutral" saying that an "undemanding" valuation and
the improving market leave room for the heating solutions
group's share price to recover 
    ** It notes that Ariston's shares dropped sharply since
summer 2023 and have underperformed STOXX Industrial Goods and
Services index  .SXNP  by about 60%, but it believes Q1 marks
peak pain for the company
    ** "An end to heat-pump channel destocking by end-Q2,
bottoming in European construction leading indicators, and the
recent reset lower of consensus expectations leaves room for the
stock to recover as the market improves into 2025" - Citi
    ** However, the broker cuts its estimates for a slower
recovery and a potential loss of Ariston's Russian business
    ** It lowers it PT by 11% to 5.80 euros, which it says still
leaves a "solid upside"
    ** Out of 10 analysts that cover Ariston, eight rate it 
"strong buy" or "buy" and ​two rate it "hold" 
    


 (Reporting by Alessandro Parodi)
 ((alessandro.parodi@thomsonreuters.com))