Balanced Hold Rating for Hochtief Amid Strong Q1-25 Results and Market Concerns

Stifel Nicolaus analyst Augustin Cendre has maintained their neutral stance on 0EPW stock, giving a Hold rating yesterday.

Augustin Cendre has given his Hold rating due to a combination of factors influencing Hochtief’s current market position. Despite the company reporting robust Q1-25 results that exceeded expectations, driven primarily by the strong performance of Turner and a one-off non-cash gain from the deconsolidation of Flatiron, there are underlying concerns that temper enthusiasm.
The cautious stance is maintained due to Hochtief’s limited exposure to the European market, which is only about 11%, and a less favorable risk-reward profile compared to its peers. Additionally, while there is potential for positive developments, particularly with Turner, the high expectations surrounding the data center sector could lead to potential disappointments. These elements contribute to a balanced view, justifying the Hold rating.

In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a €153.00 price target.