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Investing.com - Berenberg downgraded SEB SA (EPA:SK) from Buy to Hold on Tuesday, while lowering its price target to EUR88.00 from EUR106.00, citing concerns about the company’s exposure to US tariffs.
The downgrade reflects Berenberg’s assessment that SEB faces more significant challenges from US tariffs on steel and aluminum products than previously anticipated. These tariffs affect approximately 9-10% of the group’s sales, with 70-80% of SEB’s US sales consisting of pots and pans.
Berenberg expects the tariffs will likely result in highly volatile sell-in and consumer investments, creating an additional headwind for the group beyond its existing challenges in the European small domestic appliances market.
While Berenberg still anticipates a partial inflection point for SEB’s Professional division and continued growth in China in Q2 2025, the firm believes the company is "fighting on too many fronts" to maintain a Buy rating.
The research firm has adjusted its estimates below consensus for the short term, noting few clear catalysts for the French household equipment manufacturer in the immediate future.
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