J.P. Morgan starts Geberit with 'underweight' on high valuation

Geberit AG

22/01/2025 08:09

** J.P. Morgan starts Swiss bathroom and plumbing products
maker Geberit  GEBN.S  with "underweight", pointing to co's high
valuation despite headwinds and uncertainties that stock faces
    ** The high valuation persists in spite of a lack of
positive earnings momentum, the broker says, projecting EBITDA
in 2025 to come 3% below consensus 
    ** JPM sees limited potential for positive surprises for
German market, accounting for 29% of co's sales, which experts
predict to lag behind broader Europe
    ** "We view Geberit as a likely late-cycle volume recovery
play, and the additional costs required to meet any increase in
demand will likely constrain margin expansion", the broker says
    ** With supportive prospects for European Lightside industry
in mid-term, Geberit lacks key energy efficient products and
services, which may limit interest from investors, it adds
    ** Out of 20 analysts that cover Geberit, four rate the
stock "strong buy"/"buy", eight rate it "hold" and eight rate
the stock "strong sell"/"sell" - LSEG data
    

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))