Chloe Lemaire, an analyst from Jefferies, maintained the Buy rating on RENK Group AG. The associated price target remains the same with €80.00.
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Chloe Lemaire’s rating is based on a combination of factors that suggest a positive outlook for RENK Group AG despite some short-term challenges. The company is anticipated to experience a significant increase in orders, with a projected year-over-year growth of 25% to €287 million. Additionally, sales are expected to rise by 14% to €306 million, and earnings before interest and taxes (EBIT) are forecasted to grow by 17% to €51 million in the third quarter.
Despite some production disruptions in the Vehicle Mobility Solutions (VMS) segment and a slowdown in the Slide Bearings market, the management remains confident in meeting the full-year guidance. This confidence, coupled with the strong expected financial performance, underpins the Buy rating. The anticipated free cash flow, although negative at €(9) million, does not overshadow the overall positive growth trajectory, reinforcing the investment potential in RENK Group AG.
According to TipRanks, Lemaire is a top 100 analyst with an average return of 36.0% and an 85.80% success rate. Lemaire covers the Industrials sector, focusing on stocks such as Airbus Group SE, MTU Aero Engines, and Rolls-Royce Holdings.
In another report released on October 21, Kepler Capital also maintained a Buy rating on the stock with a €85.00 price target.