Electrolux (Hold, TP: SEK140.00) - Significant estimate cuts
Although Electrolux had pre-announced its Q4 EBIT, it still managed to surprise the market by presenting a disappointing 2023 outlook. We now expect a loss for H1 before the earnings recovery should start. However, the risk of intensified promotional activity entering H2 is evident, which is why visibility into the expected earnings recovery is poor. We have cut our 2023e EPS by 72% and 2024e by 27%. We reiterate our HOLD but have cut our target price to SEK140 (160).AB Electrolux sells home appliance for households and businesses, with products such as refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances under brands such as Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine. Co. has six segments: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; and Small Appliances, which comprise the products for consumer durables market; and Professional products. Co.'s professional products include food-service equipment for hotels, restaurants and institutions, as well as laundry equipment.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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