Trelleborg on track for best day in >1 year on new targets
23/05/2023 10:39
** Shares in Trelleborg TRELb.ST rise over 5% after the
Swedish engineering firm presents new financial targets
** The company now aims at EBITA margin above 20% versus
previous outlook for EBIT margin above 16%, and sees annual
sales growth over a business cycle above 8% (previously 5-8%)
** Citi says the presented targets are "ambitious," pointing
out that the margin ambition stands out compared to previous
communication
** "The stand out is the 250bps underlying upgrade to the
EBITA margin and could see 10-15% Street EBITA upgrades looking
to the out-years," the brokerage says
** New targets follow a completed divestment of the group's
tire operation, among other things, the company says in a press
release
** The share tracks its best day since March 2022
(Reporting by Greta Rosen Fondahn)
((Greta.RosenFondahn@thomsonreuters.com))