Signify falls as Barclays downgrades it on competitive pressures from China

Signify

04/12/2024 08:44

** Shares of Signify  LIGHT.AS  fall 5.3% to the bottom of
the pan-European STOXX 600 index  .STOXX  after Barclays cuts
the world's biggest lighting maker to "underweight" from
"overweight"
    ** The brokerage cites continued pressure from Chinese
competition in Europe hitting earnings and the lack of consumer
recovery in H2
    ** "Not only is Germany and China low-double digit
percentage of revenue (and facing headwinds), lighting is one of
the last end markets to benefit from lower rates," Barclays says
    ** Signify's FCF forecasts are only enough to cover debt
repayment, preventing any buybacks, it adds
    ** If the losses hold, Signify's shares will see their
biggest daily decline since late July
    ** Out of 15 analysts that cover Signify, nine rate it
"strong buy"/"buy", ​four "hold" and two​ "strong sell"/"sell" -
LSEG

 (Reporting by Gianluca Lo Nostro in Gdansk)
 ((gianluca.lonostro@thomsonreuters.com;))