Low valuation provides upside in Dometic, Aktiespararna recommends buying - with a caveat
The leisure products company Dometic has scrapped its dividend to manage high debt levels, which appears to be the right move despite a share price decline of 19 percent. That is according to Aktiespararna in a new analysis.
ANNONS
Growth has been weak for several years, but is assessed as cyclical rather than structural.
Profitability is relatively stable and cash flow strong, while savings are expected to lift the margin going forward.
The share is valued at about 9x EV/ebita on this year's forecast, with a discount to the sector.
The analysts expect slightly negative growth this year and improvement in 2027. The price target is set at just under 40 kronor and the recommendation is buy.
The recommendation is given with a caveat, however, as the Q1 report "will certainly contain a hefty dose of currency headwinds and it could be a thriller" it says.