NIBE Industrier: Improved Inventory Levels And A Recovering Market Keep Me Optimistic

2025-01-08 02:01:56 ET

Summary

• Despite a 40% decline in NIBE's share price, I believe the company's strong fundamentals and potential for recovery make it a "Buy" at 44.5 SEK.
• NIBE's valuation is currently low, but with expected earnings growth of 141% in 2025, the upside potential is significant, targeting 80 SEK/share.
• The company faces challenges, including low earnings and poor quarterly results, but improved inventory levels and a gradual market recovery are positive indicators.
• NIBE meets my investment criteria for quality and safety, offering a realistic upside despite its low dividend yield, making it an attractive long-term investment.

Dear Readers/followers,

My last article on NIBE Industrier ([[NDRBF]], [[NIABY]]) looked at the company like a good investment at below 50 SEK/share. I thought that the company had, in fact, reached a very conservative valuation and the upside was clear. The decline in the company share price has after all been very significant – over 40% since the company’s highs. Typically, this means that the company shouldn’t be declining much further....

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