Jefferies names stocks most vulnerable to German gas rationing

Dormakaba Holding AG

15/07/2022 11:08

** With German gas rationing looking likely this winter,
Jefferies names the most vulnerable firms in its capital goods
coverage, bracing for more supply chain disruption and
"destruction" of customer demand
    ** Factoring in the "prominent" risk Nord Stream 1 will run
at 40% capacity, Jefferies anticipates 10-20% gas shortfall by
early 2023 - and certain recession if Russia cuts off supplies
altogether
    ** Industry will be hardest hit, it says, accounting for 36%
of German gas demand (households make 31%), with chemical makers
most vulnerable at 14% of demand, followed by materials and
minerals at 10%, then food, drinks and tobacco at 4%
    ** Jefferies warns of significant knock-on effects of gas
rationing in euro zone's biggest economy, with many companies in
its coverage unable to pass on the resulting exponential price
increases
    ** Highly energy-intensive military lockmaker DormaKaba
 DOKA.S  and train builder Alstom  ALSO.PA  would be most
vulnerable, says Jefferies, along with industrial automation
players such as ABB  ABBN.S  
    ** The brokerage also points to high exposure to German
sales at industrial conglomerate Siemens  SIEGn.DE , food
processing group GEA  G1AG.DE , campervan maker Knaus Tabbert
 KTAG.DE  and Britain's Auto Trader Group  AUTOA.L  
    ** In the long-term, Jefferies says gas rationing could help
Siemens, ABB, Legrand  LEGD.PA  and Schneider Electric  SCHN.PA 
whose services help customers use energy more efficiently 

 (Reporting by Sarah Morland)
 ((sarah.morland@tr.com
mailto:sarah.morland@thomsonreuters.com))