Belimo falls after Jefferies cuts to 'hold' on limited upside
BUZZ-Belimo falls after Jefferies cuts to 'hold' on limited upside ** Shares in Belimo BEAN.S fall around 3% after Jefferies cut the heating and ventilation solutions maker to "hold" from "buy" as, in its view, data centre market risks outweigh upside potential
** The broker sees data centre opportunity as a key growth driver for the Swiss group, but says consensus expectations fully reflect this, with execution risks around capex deployment rising
** Jefferies forecasts strong H1 results for the company, with sales growth at 16% and margins at 22%, but flags that most of the upside is already priced in
** It expects earnings growth to normalise to low-teens and sees limited scope for further multiple expansion as end-market risks build
** “Overall we continue to like the story, but see market appetite at target valuations exhausted,” Jefferies says
** It notes the stock valuation is nearing historical peak levels after recent share price rally
** Belimo, which has gained nearly 19% YTD including today's session, hits the bottom of Switzerland's mid-cap index .SMIM
(Reporting by Basile Day)