Berenberg sees costs weighing on Daetwyler earnings in 2023, starts with 'hold'

Daetwyler Holding

25/01/2023 15:58

** Berenberg starts Swiss electronic components supplier
Daetwyler  DAE.S  with "hold" rating, pointing to an expected
drop in 2023 earnings due to higher raw material, employee and
energy costs
    ** Daetwyler has in recent years reshaped its business model
into a pure-play approach in system-critical elastomer
components and sealing solutions, Berenberg says
    ** With the latest acquisition of QSR, Berenberg expects the
firm's sales to increase about 8.2% CAGR in 2022-2024
    ** Still, it expects total costs rising by 56 million Swiss
francs this year, which in its view is not fully reflected in
consensus expectations
    ** And so, despite a margin accretion effect due to the QSR
acquisition and positive operating leverage effects, it expect
Daetwyler's margin to decline to 11.1% in 2023 from its forecast
of 12.8% in 2022. 
    ** It sets its target price at 220 francs, implying an
upside of about 8% compared to Tuesday's close
    ** Out of seven analysts that cover Daetwyler, four rate the
stock "strong buy" or "buy", and ​three rate it "hold"
 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))