UBS downgrades its recommendation on Geberit from 'buy' to 'neutral', with a price target reduced from 530 to 520 Swiss francs, a new target that leaves only 6% upside potential for the Swiss sanitaryware manufacturer's stock.
The broker considers the risk/reward profile to be more balanced, seeing only two or three quarters ahead with favorable bases for comparison, and considering that the normalization of the market in 2025 is factored into the share price.
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Geberit AG is the European leader in designing, manufacturing, and marketing sanitary systems intended for the construction and building renovation sectors. Net sales break down by family of products as follows:
- sanitary plumbing systems (38.3%): complete installed sanitary systems (showers, bathtubs, toilets, bidets, sinks, urinals, etc.), ball-valves, trigger plates, flush tanks, siphons, etc.;
- sanitary ceramic products (31.2%);
- pipe systems (30.5%): systems and conduits made of stainless steel, carbon steel, and copper, for draining water from buildings and roofs, distributing water and gas, etc.
At the end of 2021, the group had 26 production sites worldwide.
Net sales are distributed geographically as follows: Switzerland (9.5%), Germany (31.3%), Eastern Europe (10.1%), Nordic Countries (9.6%), Benelux (8.4%), Italy (6.8 %), Austria (6.2%), France (5.4%), the United Kingdom and Ireland (3.1%), Iberian Peninsula (0.8%) and other (8.8%).
GEBERIT AG 
