- (PLX AI) - Wartsila shares rose more than 5% as analysts said the company may turn the corner in the second quarter, despite a lockdown in China that kept its activities closed for weeks.
- • Wartsila's CFO said yesterday in a call with analysts he was confident the company would reach its Q2 guidance, suggesting orders likely grew compared to last year, analysts at Carnegie said
- • This suggests Q2 sales will be decent despite Wärtsilä's China factories having been closed for 6-7 weeks in the first half of the year, Carnegie said
- • Meanwhile, cost inflation is levelling out and Wärtsilä has indexation in most new contracts, protecting it if inflation takes off again
- • Demand is returning, and order margins are likely to improve from Q1, SEB analysts said
- • It looks increasingly likely that Q2 will be an inflection point in the inflation narrative that has contributed to the share price decline so far this year: SEB
- • However, Bank of America analysts remain cautious on Wartsila following the CFO call, saying that mixed activity, with improvement in Services/Storage, but subdued Marine, means orders likely peaked in last year, leaving limited room for sales growth in 2023
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