Bang & Olufsen falls as two brokers downgrade stock to 'hold'

Bang & Olufsen A/S

30/09/2022 12:37

** Shares of Bang & Olufsen  BO.CO  slide 7% after Carnegie
and Danske Bank cut their ratings for the Danish audio and video
equipment maker to "hold" from "buy"
    ** Carnegie notes the global macroeconomic situation has
worsened a lot since the company reported FY earnings in July
    ** It lowers estimates for 2022/23 and 2024/25 fiscal years
to reflect "much weaker" end-user demand
    ** Despite falling freight and component costs, there are
"huge" uncertainties about revenue development in the coming
quarters, Carnegie says
    ** For 2022/23, Carnegie forecasts an 8% revenue decline in
local currency and an EBIT margin before special items of -2%,
adding Bang & Olufsen is likely to cut its guidance
    ** Carnegie cuts target price by 42% to DKK 11, while Danske
lowers its TP by 60% to DKK 10
    ** Friday's fall brings the current price to around DKK 9,
down nearly 70% YTD
($1 = 7.5800 Danish crowns)
 (Reporting by Jacob Rasmussen)
 ((jacob.rasmussen@thomsonreuters.com))