Analysts at Berenberg Bank provided their views on Steelcase Inc. (NYSE:SCS) following the recently reported Q4 results, with a slight miss on EPS and lower-than-expected Q1 guidance.

The analysts believe the stock price decline since March 23 was an overreaction of investors (stock already recovered today, up 4%), as orders continued to grow ahead of management’s expectations and ongoing inflationary headwinds should not have surprised.

The analysts believe the company’s investment case remains strong, given robust demand trends and 2023 guidance that suggests considerable margin recovery.