Jefferies ups Husqvarna to 'buy' on normalising inventories, business momentum

Husqvarna AB

26/04/2024 11:27

** Jefferies upgrades Swedish garden equipment maker
Husqvarna  HUSQb.ST  to "buy" from "hold" as it sees industry
destocking easing and business momentum accelerating short-term
    ** The broker says it sees potential for organic growth to
resume to mid-single-digits next year, with cost savings and
other efficiency measures contributing to margin expansion
towards 10.7% in 2026
    ** Following a period of inventory destocking across various
sales channels in Q1 and continuing into April, business
momentum will likely accelerate, the broker says
    ** Good weather so far is expected to have a positive impact
on underlying demand, it adds
    ** Jefferies also sees cash flow generation improving in
2024 by efforts to drive working capital down, which should
result in a leverage ratio below 2.0x by year-end
    ** The broker raises PT by 31% to SEK 105; a 25% upside to
Thursday's closing price
    ** Husqvarna shares are up about 3% at 0937 GMT

 (Reporting by Elsa Ohlen)
 ((elsa.ohlen@thomsonreuters.com;))