Handelsbanken cuts Systemair to 'hold' on limited upside after recent rally

Systemair AB

05/12/2024 11:13

** Handelsbanken cuts Systemair  SYSR.ST  to "hold" from
"buy", saying it struggles to see sufficient upside at the
Swedish group's current valuation after a recent strong run
    ** As of last session's close, the shares of the heating,
ventilation and air conditioning group were up nearly 29% YTD
    ** However, the brokerage says that based on Systemair's
impressive Q2 gross margin, it is "on a long-term profitability
growth journey", and raises its PT by 8% to SEK 135
    ** It says Systemair has potential to further boost its
profitability once the market strengthens, by 2025/2026 at the
earliest, and European sales volumes pick up again
    ** But it will take longer for volumes to return to normal
levels, with no near-term turnaround in sight for new
construction, it adds
    ** Handelsbanken also notes Systemair's optimism on M&A
could bring additional upside to the broker's estimates
    ** Three out of five analysts rate the stock "strong buy" or
"buy", with ​two at "hold"

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