Belimo Faces Stock Decline Despite Strong Market Position in HVAC and Data Center Cooling Solutions
Belimo’s stock has dropped from over 900 to nearly 700 CHF in 2023 despite strong fundamentals. The company has seen a surge in revenue from data centers, accounting for 17% of its 1.12 billion CHF revenue. With increasing demand for efficient HVAC systems in new constructions and renovations, Belimo is well-positioned for future growth. However, risks include currency fluctuations and technological changes, while its high valuation raises concerns among investors. An asset-light model allows flexibility in supply chains amid geopolitical tensions.
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Belimo’s shares have declined from over 900 to nearly 700 CHF in 2023, despite the company’s strong fundamentals. The demand for efficient HVAC systems, driven by stricter energy standards in new constructions and the renovation market, presents growth opportunities.
Data centers now contribute 17% to Belimo’s revenue, equating to 1.12 billion CHF. Risks include currency fluctuations affecting its US revenue and potential technological shifts in cooling systems. Belimo’s asset-light model enhances supply chain flexibility, aiding in crisis resilience. Despite concerns over high valuations, the company remains a strong performer with significant market share.
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