Analyst Adela Dashian of Jefferies maintained a Buy rating on Thule Group AB, retaining the price target of SEK290.00.
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Adela Dashian has given her Buy rating due to a combination of factors influencing Thule Group AB’s performance. Despite a slight decline in organic sales, the company’s acquisition of QuadLock and the introduction of new products have positively impacted its overall sales. The third quarter results showed a net sales figure of SEK 2,528 million, which was slightly below expectations, but the company’s EBIT exceeded consensus estimates, supported by a strong gross margin.
Regionally, while Europe and North America experienced declines in organic sales, the rest of the world saw significant growth, primarily driven by the QuadLock acquisition. The company’s ability to maintain a high gross margin through product mix, price increases, and efficiency improvements is a positive indicator. Investors are expected to focus on the potential for demand normalization and inventory restocking, which are crucial for a sustained improvement in the stock’s performance.