Kettle controls maker Strix downgraded by Shore Capital

Brokers Shore Capital recently downgraded Strix (LON:KETL) and now warns that its key market of kettle components is facing price erosion.

SC analyst Tom Fraine retained his ‘hold’ recommendation on the stock, which he put in place from ‘buy’ last month after the stock re-rated.

Following an update from the group on current trading, in which management said it expects modest profit growth this year, Fraine warned its largest market is under pressure.

"We note that the kettle controls market, which drove c.90% of group revenue last year, is subject to price erosion, putting pressure on margins," Fraine said.