BNP says European capital goods should return to growth in 2025
** Order intakes in the European capital goods sector have troughed after a prolonged period of customer destocking across many end-markets, BNP Paribas says
** It expects the improved intake momentum to result in a return to sector growth in 2025
** The broker's preferred end-market exposures are in short-cycle industrial production and truck markets
** "Short-cycle industrial activity appears to be stabilising sequentially and we should see sequential improvement when destocking comes to an end" - BNP
** Truck markets are poised for a rebound, driven by North America and Europe, it adds
** Construction market is no longer BNP's least preferred, though it remains selective on companies' exposure to it
** Its least preferred end-markets are now process/oil&gas and marine, where it says order growth could slow by the year's end
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Alfa Laval ALFA.ST | underperform | neutral |
Alstom ALSO.PA | neutral | - |
Assa Abloy ASSAb.ST | outperform | neutral |
Epiroc EPIRa.ST | neutral | underperform |
Kone KNEBV.HE | outperform | neutral |
Melrose Industries MRON.L | neutral | - |
Metso METSO.HE | outperform | - |
Nexans NEXS.PA | neutral | - |
Prysmian PRY.MI | underperform | - |
Rexel RXL.PA | underperform | - |
Schindler SCHP.S | neutral | - |
Spirax SPX.L | outperform | neutral |
Stadler Rail SRAIL.S | neutral | underperform |
Traton 8TRA.DE | outperform | neutral |
Vesuvius VSVS.L | outperform | - |
Reporting by Marta Frąckowiak
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