Incap: Destocking is taking longer than expected - Nordea

Incap downgraded its 2023 guidance on 5 October due to weaker-than-expected orders from its main customer, which is conducting an inventory destocking. The midpoint of the new guidance for net sales is 13% below Refinitiv consensus. We believe the main customer's destocking process is a one-off event, and that higher interest rates and declining power prices have not permanently reduced investments in renewable energy. We trim our estimates for next year and our fair value range shifts slightly to EUR 12.7-15.6 (13.5-16.5) per share due to increased uncertainty in the medium term. Our fair value range is based on a DCF analysis, backed by a peer group comparison. Marketing material commissioned by Incap.

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