Jefferies prefers Belimo to Zehnder for future homes' products
03/08/2023 15:38
** Jefferies initiates coverage of two Swiss mid-cap
companies Zehnder ZEHN.S and Belimo BEAN.S , as the two
representatives of the HVAC (Heating, Ventilation, and Air
Conditioning) space may benefit from producing appliances for
the home of the future
** The broker starts the Swiss heating and ventilation
solutions maker Belimo with "buy", citing the firm's focused
portfolio, strong market standing, innovative strength and
application know-how
** It also flags Belimo's stock as high-quality play for
investors willing to engage in the growing eco-friendly
buildings market
** It sets Belimo's price target at 542 Swiss Francs per
share, representing a 17% upside in comparison to the stock's
value at market close on Thursday
** Jefferies starts radiator manufacturer Zehnder Group
ZEHN.S with "hold", flagging its risk profile, deeming it
challenging compared to peers
** The broker cites limited visibility on late-cycle order
momentum and looming deteriorations from an expected slow-down
in new build activity affecting the company
** It however flags that the firm is well positioned to
benefit from the transition to energy-efficient buildings
in the long run
(Reporting by Tristan Veyet)
((Tristan.chabba@thomsonreuters.com))