Jefferies analyst Adela Dashian maintained a Hold rating on Thule Group AB (0R3W – Research Report) today and set a price target of SEK340.00.
Adela Dashian gave her rating based on several factors influencing Thule Group AB’s performance. Despite the company’s better-than-expected fourth-quarter results, characterized by a 7.2% increase in net sales year-over-year and a slight decline in organic growth, the mixed performance across its product categories was a critical consideration. While there was positive organic growth in Sports & Cargo Carriers and Juvenile & Pet segments, the decline in Packs, Bags & Luggage and RV Products indicated challenges in those areas.
Adela Dashian’s Hold rating also reflects the company’s improved EBIT margin, which rose to 3.8% from 3.4% the previous year, supported by a favorable product mix and volume increases. However, the higher costs associated with new product launches balanced out these improvements. Additionally, a significant inventory reduction contributed to strong cash flow, surpassing annual targets. This combination of strengths and challenges in the current consumer market environment led to the Hold rating, anticipating some positive share price movements but also recognizing existing uncertainties.