Jefferies sees 'new era of growth' for cable manufacturers

NKT A/S

22/04/2024 11:56

** Jefferies sees "a new era of growth" for cable
manufacturers, driven by renewable energy penetration and power
grind expansion and modernization
    ** The broker expects significant growth in high and medium
voltage markets, and a turnaround in low voltage and telecom
markets
    ** It initiates Nexans SA  NEXS.PA  with "buy" rating,
noting that the company is "the only player with some capacity
slots available this decade"
    ** It starts Prysmian SPA  PRY.MI  with "hold", pointing to
further normalisation of the abnormal pricing in the U.S.
market, persisting inventory destocking in telecom and complex
integration of Encore Wire 
    ** Jefferies also initiates NKT A/S  NKT.CO  with
"underperform", expecting growth in high volume business, to
which it has significant exposure, to start only from 2027 after
two years of decline
    ** It adds that while exposure to high voltage is positive
in terms of growth and margins, it also carries higher risk of
volatility    
        ** NKT shares drop about 3% and Prysmian shares slide
0.2%, while Nexans rises 0.5%
  




    

 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))