Citi says Nibe lacks clarity on recovery plans, cuts to 'neutral'
17/05/2024 15:47
** Citigroup cuts Nibe NIBEb.ST to "neutral" from "buy" as
brokerage says the Swedish heat pump manufacturer lacks clarity
on its recovery plans
** Nibe has emphasized it expects gradual recovery as it has
signalled gradually improving demand and potential end to
destocking
** Citi, however, thinks visibility on rapid recovery for
company is not clear
** Peers have also flagged gradually improving demand,
brokerage adds, but does not see obvious catalysts for material
earnings upgrades
** Any signs of softening in pricing could prompt further
share price weakness - brokerage
** Brokerage says more sustained improvement in lead
indicators or policy, implying stronger earnings recovery, could
make it more positive on the stock
** Citi cuts PT to SEK 62 from SEK 66; sees healthy recovery
in 2025 is already priced in
** Nibe shares were down 10.7% at 1417 GMT
(Reporting by Elviira Luoma)
((elviira.luoma@thomsonreuters.com))