Berenberg cuts Yubico to 'hold' on slowing demand

Yubico AB

03/06/2025 08:15

** Berenberg downgrades Swedish security hardware maker Yubico YUBICO.ST to "hold" from "buy," as demand for its products is likely slowing

** The broker notes a 10% year-on-year decline in Yubico's Q1 order bookings, indicating slowing demand amid economic uncertainty

** "Management highlighted that interest in the YubiKey remains strong but that it is taking longer to close deals because of the economic uncertainty," the broker says, referring to the company's hardware security key

** It believes the company may be at the start of an earnings downgrade cycle, and says its 2026 EBIT estimate is 35% below consensus

** The broker cuts its PT on the stock by around 41% to SEK 160, aligning it with its revised estimates

** Out of five analysts that cover Yubico, two rate the stock "strong buy" or "buy,"​ two rate it "hold" and one "sell"

 (Reporting by Anna Chaberska)

 ((Anna.chaberska@thomsonreuters.com;))