Analyst Fabian Piasta from Jefferies maintained a Buy rating on BELIMO Holding AG (BLHWF – Research Report) and keeping the price target at CHF752.00.
Fabian Piasta has given his Buy rating due to a combination of factors that highlight Belimo Holding AG’s strong financial performance and promising outlook. The company has raised its guidance following a robust first quarter, with sales expected to grow by 15-20% year-over-year, which is a significant improvement from the previous forecast of slightly over 10%. Additionally, the EBIT margin is anticipated to exceed 20%, translating to a mid-point of CHF222 million, which is 7% higher than previous consensus estimates.
Furthermore, Belimo’s strategic initiatives, such as implementing extraordinary price increases to counteract tariff challenges, are expected to be successful based on past performance. The company’s growth is supported by strong performance across all regions, with notable contributions from the Data Centre verticals in the US. This growth is driven by the ongoing demand for liquid cooling applications, fueled by the adoption of high-performance chips. Despite a challenging new build environment in Europe, sales have been bolstered by retrofit projects, which have helped offset weaknesses in the OEM sector.
According to TipRanks, Piasta is a 4-star analyst with an average return of 15.5% and a 61.54% success rate.