Berenberg starts 'recession-proof' NKT with 'hold'
** Berenberg initiates cable solutions provider NKT NKT.CO with "hold" and says the Danish company is "recession-proof" due to revenue contribution from high-voltage cables, but lacks an upside
** The brokerage sees NKT's revenue from high-voltage cables doubling by 2028 and expects operational EBITDA margin to gradually increase with execution of higher-margin projects in the backlog
** "We estimate that NKT's current backlog offers visibility until at least 2029 and the project-based nature of this industry should insulate the company from economic downturns" - Berenberg
** However, NKT's lower portfolio diversification could negatively affect the group, it says
** It adds that NKT's valuation is expensive compared to peers Prysmian PRY.MI and Nexans NEXS.PA (both rated "buy"); starts the company with a PT of DKK 613, a 10% upside to Monday's closing price
** Out of seven analysts that cover NKT, two rate the stock "buy", three rate it "hold", and two "sell" or "strong sell"
Reporting by Greta Rosen Fondahn
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