Rockwool shows better pricing discipline but low FCF, narrow offering - MS

Rockwool A/S

29/05/2024 08:31

** Morgan Stanley upgrades Rockwool  ROCKb.CO  to
"equal-weight" from "underweight", saying it has shown
greater-than-expected pricing discipline amid low volumes 
    ** It says that easier comparables and improving interest
rates environment can lead to volume recovery 
    ** It adds that lower energy costs combined with flat
pricing y/y leave room for the Danish stone-wool manufacturer to
beat both near-term consensus and guidance 
    ** Still, it says Rockwool's narrow product offering and low
FCF make it less attractive than peers like Ireland's Kingspan
 KSP.I  or France's Saint-Gobain  SGOB.PA 
    ** Out of 17 analysts covering Rockwool, seven rate it
"buy"/"strong buy", eight "hold" and two "sell"

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