Rockwool (Buy, TP: DKK3200.00) - Confidence in resilient EBIT margin
Confidence in resilient EBIT marginWhile the c16% EBIT margin guidance for 2025 provided a confidence boost in margin resilience at current levels, we believe it reflects less conservatism than historically, likely assuming price increases and sustainable, high profitability in the US. Still, the guidance allows for lower margins in Russia, while implied subdued volumes could prove cautious. We reiterate our BUY and have raised our target price to DKK3,200 (3,120).
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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