UBS downgrades Rockwool to 'sell', shares slip

** Shares of Danish stone-wool manufacturer Rockwool ROCK_A fall 3.4%, with one analyst pointing to a UBS downgrade to "sell" from "hold" as a reason for the decline

** UBS sees margin normalisation after they were driven since 2022 by falling energy costs, rising material prices and high profits in Russia, UK and the U.S.

** For 2025, UBS expects higher energy costs, broadly flat pricing and higher operating expenses, it says in a note

** It further highlights declining earnings in Russia, with the co's guidance indicating around 1 pp margin headwind in 2025

** UBS expects the shares to de-rate over time due to weak prospects in key end markets such as Eastern Europe, Germany and France

** The stock is among the worst performers on Europe's benchmark STOXX 600 index SXXP