Citi initiates Rockwool at 'neutral', says strong growth is priced in

Rockwool A/S

19/06/2024 08:18

** Citigroup initiates Rockwool  ROCKb.CO  with "neutral",
saying the Danish stone-wool maker's growth is in line with
peers even though it relies on organic growth rather than M&A
    ** However, valuation seems less attractive at the moment as
robust growth is largely priced in by the market, it says
    ** It sets PT of DKK 3,000 vs Tuesday's closing price of DKK
2,836
    ** Citi highlights Rockwool's resilient pricing and strong
margins driven by higher-than-peers capex on capacity
improvement 
    ** It also notes strong balance sheet with no debt and high
dividend payout ratio of about 34%
    ** Out of 16 analysts covering Rockwool, five rate the stock
"buy" or "strong buy", nine "hold" and two "sell"

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