Systemair: Resilient Core Performance and Strengthening Cash Flow Support Buy Rating Despite Short-Term Headwinds

In a report released today, Adela Dashian from Jefferies maintained a Buy rating on Systemair AB, with a price target of SEK100.00.

Adela Dashian has given his Buy rating due to a combination of factors, even though the latest quarter came in weaker than the market expected. Systemair’s sales decline was heavily influenced by currency headwinds, while underlying organic growth remained slightly positive and margins held steady, indicating resilience in the core business despite softer demand in several regions.

He also notes that certain geographies, such as Western and Eastern Europe, are showing solid or accelerating growth, which supports a constructive medium‑term outlook. In addition, the strong improvement in operating cash flow, supported by better working capital management, together with management’s cautiously optimistic view and early signs of demand stabilization, underpins confidence that earnings and cash generation can improve from here, justifying a Buy recommendation.

Dashian covers the Industrials sector, focusing on stocks such as Munters Group AB, AFRY AB Class B, and Tomra Systems ASA. According to TipRanks, Dashian has an average return of 2.0% and a 41.00% success rate on recommended stocks.