Bernstein sees hiccups for European industrials in H2
04/09/2023 09:26
** Bernstein sees multiple hiccups for the European
industrial sector in H2, as it downgrades three stocks and
upgrades two
** "2H'23 will see a mini demand correction and tough
comparatives," Bernstein says, adding H2 "is likely to be the
narrow window when 'post-Covid normalisation' comes true"
** The brokerage expects Q3 order intakes to be down in
almost all divisions, book-to-bill ratios to sink, price
realisations to slow, and 2024 targets to be trimmed
** It cuts ABB ABBN.S , Sandvik SAND.ST and CNH CNHI.MI
to "market-perform"
** For ABB, the broker flags the need for a clearer message
on growth strategy and software, while CNH needs a clearer plan
to close the margin gap with Deere DE.N
** Bernstein raises Siemens SIEGn.DE to "outperform" and
Epiroc EPIRa.ST to "market-perform"
** "Siemens offers the fullest combination of electricals,
automation, digital twins and software (and of course, lots of
other stuff)" -Bernstein
** "At its simplest, buy electricals, buy automation &
software, buy major valuation disconnects, and fund with
machinery," it concludes
(Reporting by Andrey Sychev)
((Andrey.Sychev2@thomsonreuters.com; Twitter: https://twitter.com/sich_11))