Electrolux: AlphaValue cuts to 'add'

(CercleFinance.com) - AlphaValue downgraded its recommendation on Electrolux to "add" from "buy" on Thursday, saying the Swedish appliance maker is "squeezed" by supply-chain constraints and weakening demand.


"There is no catalyst for a rebound in the short term," the research house says in a note.

"The volume weakness and low operating margin expected in 2022 are priced into the current share price, although the demand situation remains uncertain in 2023," it adds.

AlphaValue says it cut its target price to 179 Swedish crowns from 197 Swedish crowns after reducing its forecasts on the company.

"We would await a better opportunity to buy the stock considering the recent appreciation over one month," it commented, while noting the stock has outperformed its sector year-to-date (-28% vs -32% respectively).

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