Finnish research house Inderes reiterates its Accumulate recommendation for heating technology company Nibe with a target price of SEK 44 ahead of the company's first-quarter report on May 19.

The research house expects a gradual recovery in sales volumes and margins, primarily driven by the Climate Solutions business area and increased demand for heat pumps in Europe.

Inderes forecasts revenue of SEK 9.7 billion and adjusted EBIT of SEK 859 million, corresponding to a margin of 8.8 percent. At the same time, currency headwinds from a stronger krona and continued margin pressure within the Stoves segment are expected to weigh on performance.

'Focus in the Q1 report will be on management's comments regarding market dynamics and margin targets, particularly in light of the Middle East conflict and changes in the German market', Inderes writes.