Munters Group AB, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Adela Dashian from Jefferies maintained a Buy rating on the stock and has a SEK160.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Adela Dashian has given her Buy rating due to a combination of factors that highlight Munters Group AB’s strategic positioning in the market. The strong results from Vertiv, particularly in the third quarter, suggest a positive outlook for Munters as well. The increasing demand for AI-driven data centers is expected to boost growth in advanced cooling solutions, a sector where Munters’ Data Center Technologies (DCT) segment is significantly involved, accounting for about 30% of their sales.
Munters is well-positioned to benefit from the robust growth in the Americas, which represents 90% of their DCT exposure. Although there is some temporary softness in the EMEA region due to industry constraints, the anticipated order intake and sales growth for Munters’ upcoming quarter are promising. The expected figures include a 50% year-over-year increase in DCT order intake and a 48% rise in net sales, despite a slight dip in adjusted EBITA margin due to strategic investments. Overall, the alignment with the AI supercycle and strategic partnerships like those with ZutaCore are seen as validating Munters’ market position, though attention to execution and margin recovery remains crucial.
According to TipRanks, Dashian is a 3-star analyst with an average return of 2.4% and a 38.55% success rate. Dashian covers the Industrials sector, focusing on stocks such as Tomra Systems ASA, Munters Group AB, and Systemair AB.