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Balco: 2024 déjà vu - SEB

Reflecting rising interest rates (financing costs), housing-related inflation issues and low confidence indicator levels, we argue Balco Group, the leading provider of glazed balcony solutions for mainly tenant-owner housing associations (>70% of revenue), faces a more muted outlook in 2024. We cut our sales and earnings estimates (implying broadly flat y/y developments in 2024). Based on revised estimates we set our new mid-point of SEK 65 (72).

Reflecting rising interest rates (financing costs), housing-related inflation issues and low confidence indicator levels, we argue Balco Group, the leading provider of glazed balcony solutions for mainly tenant-owner housing associations (>70% of revenue), faces a more muted outlook in 2024. We cut our sales and earnings estimates (implying broadly flat y/y developments in 2024). Based on revised estimates we set our new mid-point of SEK 65 (72).
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