Husqvarna (Sell, TP: SEK63.00) - Tough Q1 expected
We forecast weak consumer demand, lower volumes, negative mix, high robotics comparables, and a partial exit from its combustion engine business (worth cSEK750m of sales) to weigh on sales and EBIT in Q1, with market dynamics and a consumer environment similar to H2 2023. We forecast a Q1 sales decline of 9% YOY and an adj. EBIT margin of 11.4%, down 260bp YOY. We reiterate our SELL and SEK63 target price.Husqvarna AB produces outdoor power products. Products include: robotic lawn mowers, chainsaws, handheld petrol-powered products such as clearing saws and trimmers, garden tractors, and lawn mowers. Co. is also engaged in providing consumer watering products, cutting equipment and diamond tools for the construction and stone industries. Co.'s products and solutions are sold via dealers and retailers. Co. has three business areas: Europe & Asia/Pacific and Americas, which provide forest, park and garden products to dealers and retailers in Europe and Asia/Pacific, and in North and Latin America, respectively; and Construction, which provides light construction products and diamond tools.
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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