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AMSTERDAM, the Netherlands – Thanks to the continuing strong demand for e-Bikes, in particular in Germany, investment bank SNS Securities announced earlier this week a change in advice for Accell Group shares from hold to buy.

According to SNS Securites, Accell Group is resistant to certain potential risks in the industry. The investment bank has defined three leading issues in the bicycle market and named them the good, the bad and the ugly.

According to SNS Securites, the ‘good’ thing for Accell Group is the changing strategies of their main competitors on the Dutch market, giving Accell Group the opportunity to gain market share. The investment bank also believes that the German market, like the Dutch one, “will make strong jump forward, pushing up sales and margins.”

The bad thing on the Dutch market is that bike dealers may face legislative changes, including the Dutch tax structure. Next to that the current anti-dumping duties on bikes imported from China into the EU will expire this year. If these duties are not prolonged, the region could be flooded with cheap bikes from Asia. Despite that SNS Security thinks that this flood of cheap bikes will have a minor impact only on the results of Accell Group, although it might make investors nervous.

Large inventories

In SNS Security’s analyses the major threat for Accell Group could be large inventories as sales volumes have fallen due to the economic conditions. This could make IBD’s reluctant to order for next year’s collection. SNS Security’s targets Accell shares at € 41; today they upped 3.2% to somewhat over € 34.