Schaeffler, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Vanessa Jeffriess from Jefferies maintained a Hold rating on the stock and has a €5.25 price target.
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Vanessa Jeffriess’s rating is based on several factors that reflect Schaeffler’s current market position and future prospects. Despite the positive update from Schaeffler, which included a raised free cash flow guidance for the fiscal year, the stock’s need for earnings upgrades due to recent multiple expansions suggests a cautious stance. The valuation appears to be influenced by market sentiment towards humanoids, indicating potential volatility.
Moreover, while the Bearings & Industrial Solutions margins have been upgraded, and the company is set to deliver an EBIT margin performance at the upper half of the guidance range, there remains uncertainty in the E-Mobility sector. The company’s trading update for the third quarter showed improvements in sales and EBIT margins, but the cautious investment policy and working capital management indicate a conservative approach. These elements combined lead to a Hold rating, reflecting a balanced view of the company’s strengths and the uncertainties it faces.
In another report released on October 23, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €5.50 price target.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 0RBK in relation to earlier this year.