Barclays initiates Fluidra at 'overweight' seeing sales recovery in 2024

Pentair

04/01/2024 13:16

** Barclays starts coverage of Spanish pool equipment
provider Fluidra  FLUI.MC  with "overweight", expecting a
gradual sales recovery into 2024 as residential construction
stabilises especially in the U.S. and destocking comes to an end
    ** Slowing interest rate hikes, or even a possible cut,
should help residential construction in the U.S., boding well
for bottoming-out of pool equipment demand, the broker says
    ** However, players with greater exposure to the U.S.
market, such as Pentair  PNT.F , could see a faster overall
recovery, it adds
    ** Barclays notes Fluidra saw good progress in channel
destocking through the end of Q3, while distributors have also
signalled progress in inventory reduction
    ** "The early buy orders this year were comparable with
normal years and were better than last year, a good sign of
potential industry improvement," it says
    ** Barclays says a sales growth recovery would also help
margins given the company's relatively high operating leverage
    ** Out of 16 analysts that cover Fluidra, seven rate it
"strong buy"/"buy", ​seven "hold" and two​ "strong sell"/"sell"

 (Reporting by Jakub Olesiuk)
 ((jakub.olesiuk@thomsonreuters.com))