Barclays double-upgrades 'tariff-proof' NKT

NKT A/S

15/04/2025 09:54

** Barclays double upgrades its rating on Danish power cable solutions NKT NKT.CO to "buy" from "sell"

** Broker points to NKT's "discounted" valuation and says that the company, in its view,  will become tariff-proof from 2026

** Stock up around 5%, among best performers on STOXX 600 index .STOXX

** Amid looming economic uncertainties, NKT stands out with leading non-cyclical exposure and 83%/86% of group sales/EBITDA coming from transmission and distribution, it says

** Barclays highlights NKT's sector-leading exposure to Germany and sees total tariff cost at 8 mln euro

** It notes that elevated capex may keep near-term cash performance muted but supports return on invested capital in the longer run

** Broker raises its PT for NKT's stock to DKK 597 per share, 23% above Monday's close price

 (Reporting by Izabela Niemiec)

 ((izabela.niemiec@thomsonreuters.com))