Citi sees destocking headwinds easing, growth ahead for Nibe: starts with 'buy'
26/02/2024 12:01
** Citigroup initiates coverage of Swedish heat pump maker
Nibe NIBEb.ST with "buy" seeing a potential return to growth
by the end of 2024 as destocking headwinds clear, comparisons
ease into H2
** Citi expects negative organic growth for Nibe in 2024
reflecting a slowdown in order intake, destocking and tough
comparison figures for H1
** However, it sees market weakness as widely understood,
and the correction in inventories as a short-term problem
** Citi sees "a return to growth as feasible by the end of
the year, setting the stage for a return to good organic growth
in 2025-26E"
** It adds that an end to destocking headwinds could lead to
an improvement in sentiment from current depressed levels
** The broker sets TP at SEK 71; a 25% upside to Friday's
closing price
** Out of 14 analysts covering Nibe, six rate it "strong
buy" or "buy," five rate it "hold" and three rate it "sell" -
LSEG
(Reporting by Elsa Ohlen)
((elsa.ohlen@thomsonreuters.com;))