Zumtobel confirmed at BUY, TP EUR 11 - Supply bottlenecks hold back stronger momentum for now
Bottlenecks for certain high-end components that have been flagged previously to have a stronger impact in Q2-3, prevent the realisation of higher revenues for nowAs regards the FY 21/22 outlook management acknowledged that top-line growth should be at the upper end of the 4-7% corridor, while the EBIT margin is expected to rather reach the lower end of the 4-5% range
The group should increasingly benefit from price hikes. Management remarks suggest that order intake momentum remains very satisfactory Hence, it appears the investment cases pillar of a sustainable sales inflection is intact which we consider as the crucial element for the margin recovery story
We maintain the BUY recommendation and the target price of EUR 11
Zumtobel is a lighting company based in Austria. Co. offers a full-line range of integral professional lighting solutions, luminaires, light management systems and lighting components for indoor and outdoor applications. Co.'s business activities are carried out primarily through its subsidiary groups: the Lighting Segment (lighting solutions, interior and exterior lighting, electronic-digital lighting and room management systems) and the Components Segment (electronic and magnetic lighting components).
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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