Morgan Stanley cuts Nibe seeing risk to margin growth
19/10/2022 09:03
** Morgan Stanley downgrades Swedish heating technology
specialist NIBE Industrier NIBEb.ST to "underweight" from
"equal weight," seeing near-term risk to consensus estimates
** The brokerage says Nibe is trading like a heat pump
pureplay delivering the target set by EU in the EU REPowerEU
plan to make Europe independent from Russian fossil fuels with
growing margin, adding "but it is not"
** Morgan Stanley points out that heat pumps only make up
40% of sales, and that capacity constraints cap growth near term
** "The rest of the business is more exposed to cyclical
risks than the market assumes," the broker adds
** It cuts target price for the stock by 7% to SEK 70
** Shares in Nibe fall 8.2% and are among bottom performers
on STOXX 600 .STOXX index, the stock has dropped by 34.79% YTD
(Louise Breusch Rasmussen)
((Louisebreusch.rasmussen@thomsonreuters.com))