Berenberg ups Steico on robust market demand

Steico SE

14/02/2022 10:38

** Berenberg upgrades Steico  ST5G.DE  to "buy" from "hold"
and raises its target price by 1.63% to EUR 123, citing positive
market demand momentum following strong Q4 preliminary figures
it reported last week  urn:newsml:reuters.com:*:nASN00240W
    ** The broker says Q4 sales of EUR 99.6 million ($112.67
million) were 8% above its expectations and 10% above consensus
    ** Berenberg expects the entire construction sector to have
a favourable 2022, estimating a 4% growth in activity
    ** "STEICO is the market leader in ecological insulation
materials, which is growing at a faster rate than the overall
insulation materials market," the broker says
    ** The support of governmental sustainability initiatives
and customers' desire to reduce energy costs by insulating their
homes are two main pillars supporting sector growth, according
to Berenberg
    ** It adds the recent share price contraction represents a
good entry opportunity, noting Steico should benefit from its
fresh capacity amid ongoing demand
    ** Out of five analysts that cover Steico, three rate the
stock "strong buy" or "buy" and ​two "hold"

($1 = 0.8840 euros)

 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))