JPM cuts Rockwool to 'neutral' on cash and margin risks

Rockwool A/S

21/08/2026 11:44

** J.P. Morgan downgrades stone wool insulation maker Rockwool ROCKb.CO to "neutral" from "overweight" as higher capital expenditures weigh on its free cash flow profile
** The brokerage says that sourcing constraints in the U.S. mean the firm must absorb higher logistics costs to import products from Europe and Canada
** JPM lowers its PT by 16% to DKK 210, citing limited visibility on the earnings impact of new capacity, which makes it difficult for the market to apportion credit
** "Q2 results have continued to show volatility with the shares down 10% since results were out on Thursday, which is unlikely to draw in long-only investors," it adds
** Rockwool also raised its 2026 capital spending guidance to €750 million ($878 million), with major upcoming factory investments expected to keep costs elevated through 2027, JPM notes
** Out of 19 analysts that cover the stock, 11 rate it "strong buy" or "buy", six "hold" and two "sell" or "strong sell", according to LSEG data
($1 = 0.8542 euros)

(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))