Belimo : Magnificent structural growth story – but temporary tariff headwinds ahead
We consider the HVAC automation specialist Belimo of Top Swiss Quality. Having presented impressive defensive characteristics in the commercial building market for decades, we expect sales and earnings momentum to accelerate further going forward due to the higher-margin data centres cooling business and the group’s own specific growth initiatives in the retrofit and sensors business. This should lead to a gradual upgrade of the company’s EBIT margin target (from 18-20% fixed a couple of years ago to 25% in the longer-term/2025e: 20.4%). However, delayed price increases could temporarily hit harder than anticipated by the market and it is still difficult to find sufficient valuation upside before 2028e. Following a strong 38% y-t-d share price run, we are initiating coverage on Neutral with a target price of CHF 830.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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