Berenberg cuts Nilar to 'hold' after delayed production ramp-up
21/10/2021 13:31
** Berenberg downgrades Swedish storage battery manufacturer
Nilar NILAR.ST to "hold" from "buy"
** Brokerage cites Nilar's delayed production ramp-up, which
fuels the need for an additional equity injection urn:newsml:reuters.com:*:nASN001R35
** Says the global chip shortage is affecting selected
system integrators, resulting in subdued short-term demand for
Nilar's systems
** Hence the company now plans to have 10 lines in operation
by 2022 year-end vs 14 previously - Berenberg
** Says the delay has pushed Nilar's SEK 1 bln ($116.38 mln)
sales target for 2023 to 2025
** Nilar, which already highlighted the need for more
external capital in 2022, needs ~SEK 1.2 bln in new equity -
Berenberg
** However, brokerage still expects Nilar to be a strong
contender in the "exponentially growing" stationary energy
storage solutions end-market, which it expects to grow by 19x by
2030
($1 = 8.5926 Swedish crowns)
(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))