The research team at PhillipCapital has downgraded Koda to “neutral” from “buy” as it expects to see a demand lull in the near term.
“We expect 1HFY2023 to be challenging. Customer inventories in the US are elevated and at record levels. With consumers shifting spending to services and discretionary spending shrunk by rising inflation, furniture demand is expected to remain weak,” the team writes.
It adds that it expects Koda to turn more cautious on new projects such as sofa manufacturing on the back of a less certain outlook.