We reiterate our HOLD but have cut our target price to SEK108 (115) and our 2021–2022e adj. EBIT by 3–2%. We see upside potential to heat-pump demand from higher energy prices, as investment decisions depend on the economic benefits. If energy prices remain at current highs, we could see greater penetration rates in regions in which gas and oil heating are common such as North America, Germany, and the UK. We are 3% below consensus on Q3 adj. EBIT.
Besides the long-term growth story from higher penetration rates of heat pumps and M&A, our investment case is based on improving margins from price rises and higher profitability in recently acquired units. Our 2020–2022 adj. EBIT forecasts are 7–10% above consensus. However, due to high valuation we reiterate our HOLD, while we have raised our target price to SEK250 (190).
Besides the long-term growth story from higher penetration rates of heat pumps and M&A, our investment case remains based on improving margins from price rises and higher profitability in recently acquired units. However, with the stock looking fairly valued to us, we reiterate our HOLD but have raised our target price to SEK190 (180).
Besides the long-term growth story from higher penetration rates of heat pumps and M&A, our investment case is based on improving margins from price increases and higher profitability in recently acquired units. However, we still struggle with the valuation and retain our HOLD while raising our SEK180 (138) target price as we roll our valuation base to 2021e.
Besides the long-term growth story from higher penetration rates of heat pumps and M&A, our investment case is based on improving margins from price rises and higher profitability in recently acquired units. We have raised our target price to SEK138 (122) after rolling over our valuation to 2021e EBIT, but given the limited potential upside, we reiterate our HOLD.
Besides the long-term growth story from higher penetration rates of heat pumps and M&A, our investment case is based on improving margins from price rises, higher profitability in recently acquired units, and a turnaround in the US heat pump market. However, we still consider the valuation on the high side and await better entry points; hence, we reiterate our HOLD but have raised our target price to SEK122 (118).
We have updated our estimates ahead of the Q2 results due at 08:00 on 16 August to reflect lower growth and margins in the Element division. We have cut our 2019–2021e adj. EBIT by 2–3%. We do not consider these changes to be material, and we have not changed our HOLD recommendation. We reiterate our SEK118 target price.
Besides the long-term growth story from higher penetration rates of heat pumps and M&A, in our view the investment case is based on improving margins from price rises, higher profitability in recently acquired units, and a US heat pump market turnaround. However, with limited upside potential from the current share price to our target price, we reiterate our HOLD and have raised our target price to SEK118 (115) on our 1–3% higher EBIT estimates, mainly driven by FX.
Besides the long-term growth story from higher penetration rates of heat pumps and M&A, the investment case is based on improving margins from price rises, higher profitability in recently acquired units and a turnaround in the US heat pump market. However, we see limited upside potential from the current share price to our target price. We reiterate our HOLD but have raised our target price to SEK115 (102), having shifted our valuation base from 2019 to 2020.
Our investment case for Nibe – apart from the long-term growth story of a higher penetration rate of heat pumps and M&A – is based on improving margins from price rises, higher profitability in recently acquired units, and a turnaround in the US heat pump market. However, at the current share price, we see limited upside potential to our target price. We reiterate our HOLD and target price of SEK102.
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