On Friday, Berenberg adjusted its outlook on Husqvarna AB (HUSQB:SS) shares, a global leader in outdoor power products, by reducing the price target to SEK75.00 from SEK80.00. The firm maintained a Hold rating on the stock.
This decision followed Husqvarna's second-quarter financial results, which were released on Thursday, July 18, 2024, and highlighted slow organic growth and contracting margins.
The company's quarterly performance revealed struggles amidst a difficult market environment, even though there was noticeable growth in the professional mowers and battery-powered tools segments. Berenberg noted that Husqvarna typically generates the bulk of its profits in the first half of the year, prompting the firm to revise its full-year 2024 estimates downward and adjust its margin expectations for the future.
The revised price target reflects these updated estimates and stems from a reevaluation of Husqvarna's financial outlook. Berenberg believes that the current valuation of Husqvarna's shares is fair, despite the challenges faced and the adjustments made to the company's projected financials.
The report indicates that while there are positive aspects within Husqvarna's diverse product portfolio, the overall tough market conditions are impacting the company's growth trajectory and profitability. Berenberg's stance remains cautious, opting to keep the Hold rating while signaling the potential for Husqvarna's performance to stabilize at the newly assessed value level.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.