Sweden's Nibe slides on Citi's cautious recovery forecasts
09/09/2024 10:33
** Swedish heat pump maker Nibe's NIBEb.ST shares down
3.3%, among worst performers on Stoxx .STOXX
** Brokerage Citi cuts its forecast for demand in the
European heat pump market by 19% by 2030
** Brokerage expects company's earnings per share 12% below
quoted consensus in Q3, seeing recovery expectations in second
half of 2024 as too high given "still-soft" data
** Even assuming an improvement in 2025, Citi sees the stock
as over-valued, noting price-to-earnings ratio of 35x
** Brokerage adds that any sign of softer pricing would make
it challenging for Nibe to return to historic margin levels
(Reporting by Anna Chaberska)
((anna.chaberska@thomsonreuters.com))