** Barclays expects 2025 to be another year of soft industrial demand, with sales in European capital goods expected to grow by about 3%, below historical averages of 5-6%
** It sees growth potential for electrification, marine and gold mining, while predicting struggles for other industrials due to moderate GDP growth, fading price benefits, high inventory levels and trade tensions
** It forecasts average 2025 EBIT 5% below consensus estimates for the sector
** It adds increased trade tensions increase risks to the sector making more than a half of its sales in Europe and China
** In this environment, Barclays says it is "overweight" on companies that show a combination of strong market growth, solid business models and reasonable valuations
** It is less confident in stocks with overly optimistic market expectations or those facing incremental business model challenges in 2025
RATING CHANGES:
COMPANY | RATING | OLD RATING | PT | OLD PT |
|---|---|---|---|---|
Epiroc EPIRa.ST | overweight | underweight | SEK 205 | SEK 170 |
Spirax Group SPX.L | overweight | equal weight | 8,350p | 7,750p |
Schindler Holding SCHP.S | overweight | equal weight | CHF 258 | CHF 230 |
Ariston ARIS.MI | equal weight | overweight | EUR 3.81 | EUR 5 |
Signify LIGHT.AS | underweight | overweight | EUR 18 | EUR 29 |
Andritz ANDR.VI | underweight | equal weight | EUR 40 | EUR 50 |
(Reporting by Vera Dvorakova)
((vera.dvorakova@thomsonreuters.com))
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