On Wednesday, DNB Markets adjusted the price target for GN Store Nord A/S (GN:DC) (OTC: GGNDF) shares, a Danish manufacturer of hearing aids and audio solutions, to DKK245.00, a slight decrease from the previous DKK250.00. Despite this modification, the firm continues to recommend a Buy rating for the stock.
The revision follows GN Store Nord's decision to discontinue the Elite and Talk product lines, a strategic move aimed at concentrating on more profitable segments. This shift is expected to impact the Consumer division's revenue and profitability, prompting the company to engage in extraordinary promotional activities to mitigate the effects.
In light of these developments, GN Store Nord has updated its financial outlook for the year 2024. The company now anticipates organic growth to be between 2% and 6%, with an EBITA margin in the range of 12% to 13%. Additionally, the forecast for free cash flow (FCF) has been set at DKK900 million or higher.
The revised price target of DKK245 by DNB Markets reflects a cautious yet optimistic view of GN Store Nord's potential to grow and remain profitable despite the recent strategic changes.
The Buy rating indicates that the firm believes the stock still holds value for investors, even with the adjustment in the company's guidance and the associated operational shifts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.