Sweden's Hexatronic slides after peer Clearfield cuts guidance

Hexatronic AB

05/05/2023 09:30

** Shares in Swedish electronic and technical solutions
maker Hexatronic  HTRO.ST  fall nearly 6%, with local analysts
pointing to a negative read across after U.S. peer Clearfield
 CLFD.O  posted second quarter results and cut its 2023 guidance
    ** Clearfield lowered late on Thursday European time its
full-year outlook by about $120 mln from its previous forecast
at the mid-point, citing customer order trends and an
anticipated normalization of inventory carrying practices at
customer sites
    ** "The news from Clearfield is clearly negative for the
broader broadband equipment sector. It will add ammo for the
short case in Hexatronic," Pareto Securities analyst Stefan Vård
says, adding, however, that on a company-specific view he sees
no reason to change the forecast for Hexatronic
    ** Redeye analyst Fredrik Nilsson says that the Clearfield
guidance cut could fuel concerns about the Fiber to the home
(FTTH) market in the U.S., but also notes that Hexatronic
delivered strong Q1 results
    ** The stock, down 46% year-to-date, is among worst
performers on pan-European STOXX 600  .STOXX  index

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))