JPM sees economic uncertainty weighing on GN Store Nord's audio biz, moves to 'neutral'

GN Store Nord A/S

02/05/2025 09:48

** J.P.Morgan cuts Danish hearing aid and audio solutions maker GN Store Nord GN.CO to "neutral" from "overweight," citing economic uncertainty affecting its audio business

** JPM notes that Enterprise's results, which serves corporate clients, were impacted by destocking, likely reflecting distributor concerns around end market demand, as companies delay purchase decisions

** The uncertainty impacting the Enterprise division may last a while and also weigh on the balance sheet, says JPM

** "Given largely Chinese manufacturing for Enterprise and Gaming, a tariff impact had been expected," JPM notes, adding GN Store indicated costs in the new production areas will be similar to China

** On a brighter note, JPM sees weakness in the company's Hearing division as likely temporary, adding that economic shocks to this market "are short lived and generate pent-up demand"

** Out of 23 analysts covering the stock, 10 rate it "strong buy" or "buy," eight rate it "hold" and three rate it "sell" or "strong sell," according to LSEG data

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))