GARO (No_rec, TP: SEK) - Discontinuing coverage

We have discontinued coverage of Garo. Our last published recommendation, target price, and estimates should no longer be relied upon.

GARO (Hold, TP: SEK26.00) - Recharging…please HOLD

We reiterate our HOLD, but have cut our target price to SEK26 (30) following the weak Q2 report. E-Mobility was again loss-making due to low sales, a weak gross margin and production redundancies, while Electrification was in line with our forecasts. With a net debt/EBITDA of 6.0x, we continue to acknowledge the market’s increased concerns on liquidity, dependent on a lower working capital/sales ratio to avoid a continued covenant breach.

GARO (Hold, TP: SEK30.00) - Low voltage

We reiterate our HOLD and SEK30 target price following a weak Q1 report compared to our estimates, with negative EBIT for E-Mobility due to low demand and negative operational leverage, and Electrification still in a cyclically slow Nordic construction market. With net debt/EBITDA of c4.0x, we acknowledge the market’s increased concerns on liquidity, dependent on an inventory reduction near-term.

GARO (Buy, TP: SEK60.00) - Expecting volume dip and price rises

We expect the downturn in the Nordic construction sector to continue hampering Electrification growth and margins in Q3, and E-Mobility growth to slow somewhat due to a slight delay in Entity Compact deliveries. However, we see some support for EBIT from the price rises in July despite lower volumes, and multiples are at all-time lows. We reiterate our BUY but have cut our target price to SEK60 (65).

GARO (Buy, TP: SEK65.00) - Strong growth, weak EBIT

Q2 sales were in line with our forecast, with strong E-Mobility growth. However, EBIT missed our estimate by 49% due to a larger share of sales to lower-margin key accounts, a negative price/cost lag, and a weak SEK. We reiterate our BUY, but have cut our target price to SEK65 (70).

Northern Lights

GARO (Hold, TP: SEK87.00) - Recharging

GARO’s Q1 results were slightly above our expectation, with improving E-Mobility performance but contracting margins in Electrification YOY. We believe the Entity roll-out should provide higher Q2 volumes, but concerns about the construction market trend could weigh on the share price. We reiterate our HOLD but have lowered our target price to SEK87 (100).

GARO (Hold, TP: SEK100.00) - EV charging on pause

GARO’s Q4 report was in line with the profit warning on 27 January, where net sales and EBIT were hurt by lower sales and an inventory write-down in E-Mobility. We reiterate our HOLD, but have lowered our target price to SEK100 (115).

Northern Lights

GARO (Hold, TP: SEK115.00) - Running on low power

We have downgraded GARO to HOLD (BUY) and have lowered our target price to SEK115 (140) following a profit warning on Friday, in which GARO flagged lower net sales and EBIT for Q4 due to limited deliveries in E-Mobility and a SEK15m one-off cost.

GARO (Buy, TP: SEK140.00) - Deep dive into AC charging market

With its new product Entity, GARO offers a single platform that can be adapted to both home charging and destination charging. In this report, we examine Entity and dive into the AC charging market. Our estimates are unchanged, and we reiterate our BUY and SEK140 target price.

GARO - Initiation of coverage - ‘Watt’s up?’

GARO develops and manufactures systems for electrical installations and electric vehicle (EV) charging. With a long track record of profitable growth, and exposure to the growing EV market, GARO’s E-Mobility and Electrification segments combine high growth with stable cash generation. We initiate coverage with a BUY and SEK140 target price.

GARO - New products coming up

We lower EBIT by 8-2% for ’22e-’24e Component shortages are still an issue New system and products to be launched in Q4

GARO - A slightly disappointing Q3 report

EBIT SEK 37m vs. ABGSCe SEK 41m Disappointing guidance for Q4’22 Conference call at 09.30 CET

GARO - A possible winner on Tidöavtalet

Q3 report due on Friday, 11 November We lower our ’23e EBIT by 2% Improved infrastructure will boost long-term growth

GARO - Component issues hold back Q2 earnings

Q2’22 EBIT of SEK 40m vs. ABGSCe SEK 61m Temporary component shortages hold back sales We lower EBIT by 17-4% for ’22e-’24e

GARO - Set for improving E-Mobility growth in H2

Component issues holding back near-term sales GARO well-positioned to accelerate growth in H2 Maintain fair value range at SEK 170-220 per share

Powerpoint Sector Report - Renewable weekly - Theme of the week: Renew...

Comparing renewable company growth targets Companies have ambitious targets Solid week for Nordic renewable shares last week

Powerpoint Sector Report - Renewable Weekly: Theme of the week - Ecocl...

Ecoclime saves energy and costs for property owners Initiating with fair value range of SEK 12-20 per share Average week for Nordic renewable shares

GARO - Strong sales offset slight margin weakness

Q4’21 EBIT 1% ahead of ABGSCe/Factset Good E-mobility sales on strong December deliveries We only make minor changes to ’22-‘23e EBIT