Barclays cuts Nibe to 'equal weight' amid high end market uncertainty

Nibe Industrier AB

28/03/2024 11:42

** Barclays cuts Nibe Industrier  NIBEb.ST  to "equal
weight" from "overweight", as it sees further EBIT downgrades
for the Swedish heat pump maker due to increased operating
de-leverage and inventory destock 
    ** "We think the market is unlikely to look through this
given heightened end-market uncertainty," it says
    ** The broker lowers its EBIT margin estimates for 2024/25
by around 15-20% as it says operating deleverage and inventory
destock could be more severe, while it sees increased sales
spend and higher promotion activity
    ** It adds that while end market demand will likely bottom
in the first half of the year, the recovery in the second half
is likely to be slower-than-expected
    ** It also flags that original equipment manufacturers still
have excess inventory to burn through
    ** The broker sees limited valuation support on its new
numbers and cuts PT by 31% to SEK 52
    ** Out of 15 analysts covering Nibe, six rate the stock
"strong buy" or "buy", five rate it "hold" and four rate it
"sell"
    

 (Reporting by Anna Chaberska)
 ((Anna.Chaberska@thomsonreuters.com))