'Getting warmer': Barclays initiates heat pump firm Nibe at 'overweight'
05/01/2024 10:30
** Barclays starts coverage of Swedish heat pump maker Nibe
NIBEb.ST with "overweight" saying that despite investors'
fears, "vast majority of bad news is already out there" and the
market will continue to grow from 2025
** "While we are cautious on the numerous headwinds to heat
pump adoption, we think the market has gone too far," the broker
says
** While Barclays expects volumes to decline by a
mid-single-digit percentage in 2024, it forecasts high
single-digit growth from 2025, compared to low double-digits
from 2015
** Since 2015, Nibe has gained about 10% of its growth
through mergers and acquisitions, which provides a profit growth
opportunity, the broker says
** Barclays adds that investor concerns over "normalised
margin reset" look overdone, citing benefits from the current
replacement cycle in Sweden
** It expects no pricing declines in the first half of 2024
** Nibe had in August flagged slowing demand growth in some
of its markets, with steep price hikes hitting sub-suppliers
(Reporting by Agnieszka Olenska)
((Agnieszka.Olenska@thomsonreuters.com;))