'No light at the end of the tunnel yet' for LEM, Berenberg cuts to 'hold'

** Berenberg downgrades Swiss electrical measurement specialist LEM Holding LEHN to 'hold', pointing to weaker margins from intense pricing pressure

** On Wednesday, the company reported a lower than expected Q1 gross margin of 38%, down year-on-year, under the strain of defending its market share in an increasingly competitive pricing environment

** LEM's weaker margin was "caused in part by Chinese competitors that are increasingly targeting European and domestic markets by undercutting on price," say Berenberg

** The brokerage slashes its 2025 sales growth forecast to just 1% from 4% and now expects the adjusted-EBIT margin to reach only 8%

** Berenberg analysts add that "the level of overcapacity in LEM's markets is likely to remain"

** Shares of LEM are seen down 5.9% at 08:09 GMT

($1 = 0.8126 Swiss francs)