Stabilus drops as JPM points to slowing momentum

Stabilus SE

10/11/2023 08:40

** Shares in Stabilus  STM1.DE  are down more than 3% as
analysts point to slowing segment growth after the industrial
and automotive supplier issued preliminary FY results and 2024
guidance
    ** The firm sees FY 2024 revenue of 1.4-1.5 billion euros
with an adjusted EBIT margin of 13-14%, assuming consolidation
of its DESTACO acquisition from March 2024 and including
expected integration costs
    ** "While guidance is in line with consensus expectations,
growth drivers in Automotive seem to be slowing down in Q4,"
J.P. Morgan says, noting "margins are under pressure (in
Americas)" and there is higher research development
capitalization
    ** Organic growth in the group's Powerise Automotive unit
fell by 7% in the fourth quarter
    ** "Powerise momentum is slowing on what seems like product
mix normalisation (Europe/NA)," JPM says, adding the unit also
delivered lower-than-expected revenues in Asia-Pacific
    ** Stabilus is one of the worst performers in German
mid-caps index  .MDAXI 

($1 = 0.9376 euros)

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))