Rockwool (Buy, TP: DKK3120.00) - Looking for margin resilience
Looking for margin resilienceWe expect a solid EBIT margin for Q4 and the 2024 guidance to be exceeded. Looking to 2025, we believe management is likely to opt for yet another cautious outlook, but early signs of pricing discipline are encouraging. In our view, confidence in margin resilience is key for a re-rating. We reiterate our BUY, but have lowered our target price to DKK3,120 (3,200) on higher input cost inflation.
Rockwool International is a holding company. Through its subsidiaries, Co. supplies products and systems based on stone wool. Co.'s operations can be divided into two segments: the Insulation segment and the Systems segment. The Insulation segment produces insulation for the construction sector, but also special insulation for power plants, the process industry and ships. The Systems segment covers the non-insulation business areas: ceilings (Rockfon), crop management products (Grodan), facade panels (Rockpanel), engineered reinforcement fibres (Lapinus Fibres), and outdoor noise and vibration control products (RockDelta).
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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