BNP says European capital goods should return to growth in 2025

Schindler Holding AG

28/11/2024 13:06

** Order intakes in the European capital goods sector have
troughed after a prolonged period of customer destocking across
many end-markets, BNP Paribas says
** It expects the improved intake momentum to result in a return
to sector growth in 2025
** The broker's preferred end-market exposures are in
short-cycle industrial production and truck markets
** "Short-cycle industrial activity appears to be stabilising
sequentially and we should see sequential improvement when
destocking comes to an end" - BNP
** Truck markets are poised for a rebound, driven by North
America and Europe, it adds
** Construction market is no longer BNP's least preferred,
though it remains selective on companies' exposure to it
** Its least preferred end-markets are now process/oil&gas and
marine, where it says order growth could slow by the year's end
     
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 Alstom  ALSO.PA                neutral         -
 Assa Abloy  ASSAb.ST           outperform      neutral
 Epiroc  EPIRa.ST               neutral         underperform
 Kone  KNEBV.HE                 outperform      neutral
 Melrose Industries  MRON.L     neutral         -
 Metso  METSO.HE                outperform      -
 Nexans  NEXS.PA                neutral         -
 Prysmian  PRY.MI               underperform    -
 Rexel  RXL.PA                  underperform    -
 Schindler  SCHP.S              neutral         -
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 Vesuvius  VSVS.L               outperform      -
     

 (Reporting by Marta Frąckowiak)
 ((mailto:marta.frackowiak@thomsonreuters.com))