Danske Bank cuts Arjo on cost inflation worries

Arjo AB (publ)

07/04/2022 11:49

** Danske Bank downgrades Swedish medical technology firm
Arjo  ARJOb.ST  to "hold" from "buy" citing cost inflation and
supply chain issues
    ** Danske analyst Karl Norén says cost inflation is becoming
an issue, as the price increases to off-set this will lag a
couple of quarters
    ** He adds supply chain issues will lead to low organic
growth in Q1
    ** The broker cuts its price target by 19% to SEK 85, saying
the valuation is still quite high at EV/EBITDA 22x 2022, above
rival Getinge  GETIb.ST  which is currently performing better,
according to Danske
    ** Arjo shares are down 4.2% at 1148 GMT, after falling as
much as 9.1%

 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))