Bank of America expects a relatively soft first quarter from heating technology specialist Nibe, weighed down by seasonality and currency headwinds, according to a recent research note. At the same time, underlying demand is seen to be on a recovery path.

Looking further ahead, the bank highlights prospects for growth and margin expansion through 2026, noting that higher gas prices could bolster demand for heat pumps in Europe.

The Buy rating is reiterated with a price target of 48 SEK.

Nibe shares are up 6.1 percent. The interim report is scheduled for release on May 19.