Jefferies cuts Autostore to 'hold' as sector recovery may disappoint

AutoStore Holdings

11/08/2023 10:37

** Jefferies downgrades Norwegian robotic and software
technology company Autostore  AUTO.OL  to "hold" from "buy"
expecting that the sector recovery may disappoint despite the
normalisation seen over 2023
    ** The brokerage cites the incrementally more negative views
from peers on the warehouse automation sector so far in Q2
    ** It points out that demand has not yet recovered, and
order trends have remained weak 
    ** The broker still expects an improvement in orders for
Autostore over H2, but sees risks that the recovery in orders is
delayed into 2024
    ** Jefferies adds that valuation looks quite full near-term,
and sees more risks than rewards for the stock 
    ** However, the broker says it still likes the long-term 
story, sees higher growth/penetration of Autonomous Mobile
Robots (AMR) technologies, which have extremely attractive
features in the current environment
    ** Autostore is expected to report its Q2 results on August
17   
    ** Out of ten analysts that cover Autostore, three rate it
"strong buy" or "buy", five rate "hold", and two rate "sell" or
"strong sell"

    
    

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com
))