Pareto ups Thule to 'buy' on expected return to growth, shares rise

Thule AB

28/06/2023 09:59

** Pareto Securities upgrades Swedish outdoor equipment
maker Thule  THULE.ST  to "buy" from "hold" and raises TP by 25%
to SEK 350
    ** The broker expects Q2 2023 to be the last quarter of
negative organic growth for the company, helped by easing
destocking trends
    ** The recovery is fuelled by resilient demand in premium
categories and improved operational efficiencies, Pareto says
    ** It expects growth to resume from H2 as retail inventories
normalize, with rollouts of new products propelling long-term
growth
    ** Reduced freight and raw material costs will benefit
margins in 2024, Pareto adds
    ** The Thule stock is up 3.6%, among top gainers on Europe's
STOXX 600 index  .STOXX , and has risen nearly 40% YTD

 (Reporting by Jacob Rasmussen)
 ((jacob.rasmussen@thomsonreuters.com))