Analyst Adela Dashian from Jefferies maintained a Hold rating on Thule Group AB (0R3W – Research Report) and keeping the price target at SEK340.00.
Adela Dashian’s rating is based on several factors influencing Thule Group AB’s recent performance. The company experienced a slower-than-expected start to the year, with net sales slightly below consensus expectations and a notable decline in organic growth, particularly in North America. This region saw a 13% organic decline, which significantly impacted the overall sales performance.
Despite an improvement in gross margin, the company’s profitability was hindered by a high cost base due to numerous product launches. To address these challenges, Thule has implemented a new sales organization and efficiency measures in North America, along with price increases to counteract tariffs. Additionally, the company continues to invest in niche markets where it maintains a strong presence, which could potentially bolster future growth. These mixed signals contribute to the Hold rating, reflecting a cautious outlook amid current market conditions.