'Too much hope' - Barclays cuts Nibe on bleak demand prospects
04/06/2024 09:17
** Barclays cuts Swedish heat pump maker Nibe Industrier
NIBEb.ST to "underweight" from "equal weight", saying recent
channel checks reveal a bleaker picture than the market's
optimistic assumptions
** The broker says its channel checks that include Chinese
and Japanese peers show slow demand, severe competition, and
destocking that could end later than expected
** "There is a lot of uncertainty over inventory levels
given how fragmented the market is," it says, adding destocking
could end as late as H1 2025, vs Nibe's end-Q2 estimate
** It says demand in Germany looks stagnant, possibly from
subsidy schemes in EVs taking a U-turn, and it expects only a
slow sequential recovery
** Volumes will be the key to maintain and gain market share
going forward, it adds
** Shares in Nibe fall 4.9% to the bottom of European
benchmark STOXX 600 index .STOXX
(Reporting by Tilla Sjaavaag)
((tilla.sjaavaag@thomsonreuters.com; +48 58 7696600;))