Nibe Industrier (Hold, TP: SEK80.00) - Waiting for a better entry point
We see an attractive long-term growth story in NIBE, driven by M&A and structural growth for heat pumps. However, for Q4 we see pressure on earnings from higher input costs, and a still-weak market for Climate Solutions in North America (results due at 08:00 CET on 16 February). With Sweden accounting for ~16% of sales, we see a risk that volatility in Sweden’s housing will affect investor sentiment towards the shares. In addition, comparables get tougher in Q1 given a material calendar effect in Q1 2017. We reiterate our HOLD recommendation and SEK80 target price.
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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