Berenberg starts Munters at 'buy' as cooling solutions for data centres drive growth

Munters AB

10/10/2022 11:23

** Berenberg initiates dehumidification and cooling
solutions maker Munters  MTRS.ST  with "buy", citing the Swedish
group's increasing exposure to high-growth data centre and
lithium-ion battery markets
    ** It says Munters has overcome initial operational
challenges and enhanced its production stability, which should
help grow profitability
    ** The broker says Munters has a leading position providing
cooling solutions to data centres, making the market its main
growth driver
    ** Berenberg points to the record order intake of SEK 2.8
bln ($248 mln) for Munters' data centres business in H1, and
expects the unit to continue this momentum in Q3
    ** It forecasts data centre segment sales of SEK 3.3 bln in
2024, translating into a 68% sales CAGR in 2022-2024 and
representing 25% of group sales in 2024 vs 10% in 2021
    ** The broker adds Munters' growing exposure to the
lithium-ion battery market will support organic growth above the
targeted 5% per year
($1 = 11.2823 Swedish crowns)
 (Reporting by Louise Breusch Rasmussen)
 ((Louisebreusch.rasmussen@thomsonreuters.com))