Berenberg initiates coverage on Inwido stock with Buy rating

Berenberg initiated coverage on Inwido AB (SS:INWI) with a Buy rating and a SEK228.00 price target, citing the company's robust market position as a leading European window group and its demonstrated resilience in maintaining stable margins despite over 20% organic sales declines. The firm highlighted Inwido's strong 60% return on tangible capital since its IPO and believes the stock is undervalued at 13x 2025 EV/EBITA, projecting double-digit earnings compounding and additional upside from the recovering Nordic housing sector.

Analysis

Berenberg has initiated coverage on Inwido AB (SS:INWI) with a 'Buy' rating and a SEK228.00 price target, underscoring the company's position as a leading European window and door manufacturer. The firm's analysis highlights Inwido's operational resilience, evidenced by its ability to maintain stable margins despite a significant organic sales decline of over 20% in the last two years. This stability is complemented by a strong historical performance, including an approximate 60% return on tangible capital since its 2014 IPO, which Berenberg attributes to its strong position in niche market segments. Based on a valuation of 13 times 2025 EV/EBITA, Berenberg considers the stock undervalued, projecting potential for double-digit earnings compounding. This outlook is further supported by an anticipated cyclical tailwind from the ongoing recovery in the Nordic housing sector, which presents an additional source of upside potential.

Key Decisions for Investors

• Investors may consider the 'Buy' rating and SEK228.00 price target as a signal of potential undervaluation, particularly given the stock's 13x 2025 EV/EBITA multiple and prospects for double-digit earnings growth.
• The company's demonstrated ability to protect margins during a sales downturn is a key strength; investors should monitor upcoming earnings for continued margin stability as the top line recovers.
• The recovery of the Nordic housing market is a primary external catalyst, so it is prudent to track housing data and leading economic indicators in the region for signs of an accelerating recovery that could drive upside for Inwido.