BofA cuts Electrolux to 'underperform' on renewed cost inflation

Electrolux AB

30/03/2026 11:22

** BofA Securities downgrades Swedish home appliance maker Electrolux ELUXb.ST to "underperform" from "buy" due to weak product demand and escalating supply costs

** The broker notes a 30% surge in freight rates and a 10-30% year-on-year increase in raw material prices

** This difficult setup generates a scenario of "renewed cost inflation in raw materials and logistics", creating a massive financial headwind, BofA says

** The brokerage lowers its 2026 and 2027 EBIT estimates by 16% and 26%, respectively, placing them below market consensus

** To reflect these operational challenges, the broker cuts its PT by 41% to SEK 50, vs SEK 60.46 at Friday's close

** Out of 15 analysts that cover the stock, three rate it "strong buy" or "buy", 10 "hold" and two "sell", according to LSEG data

** Shares of Electrolux fall more than 7% in early afternoon trading in Stockholm

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))