UBS initiates Electrolux at 'neutral', says 'gentle spin not yet full cycle'

UBS initiates coverage of Electrolux ELUXb.ST with "neutral", seeing both upside and downside risks as evenly balanced as the Swedish home appliance maker's margin recovery is offset by a challenging market

The brokerage notes the market outlook remains modest, with growth driven by execution and product mix rather than volume in a highly promotional environment

Electrolux's progress on cost efficiencies is a key part of its self-help story, but UBS says its pricing power remains constrained by input costs and tariffs

The broker states it needs "clearer evidence of sustained profitability in North America" and stable European pricing before turning more constructive on the stock

UBS sets its price target at SEK 82/shr, noting that while shares trade at a discount to peers, further proof of delivery is required for a more positive view

Out of 13 analysts that cover the stock, four rate it "strong buy" or "buy", eight rate it "hold", and one rates "sell", according to LSEG data