Electrolux shares extend losses, analysts flag need for 'meaningful' price hikes

Electrolux AB

30/04/2025 09:19

** Shares in Electrolux ELUXb.ST fall 3%, extending Tuesday's losses, when they closed 17.5% down after the Swedish home appliance maker flagged risks to consumer sentiment from U.S tariffs

** The group said on Tuesday it aimed to offset higher tariff related costs with price increases to customers

** Citi analysts warn the group would have to raise prices in the U.S by more than 20% due to the tariffs

** "Given the relatively low gross margins, even a minor shortfall in pricing would have a big impact on profit," Citi says

** "Overall, management's comments did not instil confidence that Electrolux can handle tariff headwinds better than its peers," J.P.Morgan says

** Both Citi and JPM cut their target price on the stock by 18% to 70 Swedish crowns

** Barclays cuts TP to 55 crowns from 62 crowns, warning of demand drag from the likely "meaningful pricing" needed to offset tariffs effects

** Shares fall 36% year-to-date to 58.8 crowns, lowest since April 2009

 (Reporting by Boleslaw Lasocki)

 ((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))