'Blurred vision in 2023': Berenberg cuts Basler to 'hold'

Basler AG

15/11/2022 08:02

** Berenberg cuts German industrial camera maker Basler
 BSLG.DE  to "hold" from "buy", seeing a slowdown in growth in
2023 
    ** Berenberg flags that while strong Q3 results and
increased FY22 guidance set the company up for a strong finish
to the year, order intake is normalising, suggesting a shift in
customer order behaviour and slowing growth in the next year
    ** "Our updated estimates reflect this view, which leaves
limited scope for shares to outperform in the near term, in our
view" the broker says
    ** Despite order backlog at high levels providing visibility
into Q1 2023, Berenberg expects it to reduce with weaker demand
and shorter order horizons thanks to improved delivery times
    ** Berenberg adds that combined with lower growth, wage
inflation will bite in 2023, leading to a reduced EBT margin
estimate of 11.2%
    ** Basler shares slide 1.7% to the bottom of Germany's
small-cap index  .SDAXI 
    ($1 = 0.9636 euros)
 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))