Take profits in Munters - warns of a plunge at the slightest misstep
Bildkälla: Stockfoto

Take profits in Munters - warns of a plunge at the slightest misstep

The climate control company Munters’ stock has almost doubled after Dagens industri put its buy stamp on it a year ago. But the valuation has now become strained. The share is trading at a P/E ratio above 30 on this year’s expected earnings.

The newspaper assesses that the room for disappointments is very limited and that even minor setbacks could lead to sharp share price declines.

"It is enough for one of this year’s earnings reports not to please the stock market for the share to plunge by 20 percent," writes Di and therefore chooses to take profits after the rise.
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