Berenberg starts Vaisala at 'buy' on 'outstanding' industrial unit

Vaisala Oyj

04/04/2025 09:57

** Berenberg initiates Vaisala VAIAS.HE with a "buy" rating and a PT of 57 euros, saying the measurement instruments producer's industrial segment is an "outstanding business"

** It says the Industrial Measurements business, making up 58% of group EBIT, is "a gem, with a market-leading position and wide moat, and leading organic growth and profitability"

** The combination of recent structural improvements and Vaisala's potential are not reflected in its valuation, the broker says

** It adds Vaisala can price for excellent profitability with operating margins north of 20% and a return on invested capital of above 40%, as these products represent a tiny share of its customers' total costs

** It expects the group margin to improve by 200 bps in 2025-2027, resulting in 12% compound annual EBIT growth

** Berenberg expects Vaisala to deliver annual organic sales growth of 6% in 2025-2027, 2 pp above its 2013-2024 average

 (Reporting by Marta Frackowiak)

 ((marta.frackowiak@thomsonreuters.com))