Befesa S.A., the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Fabian Piasta from Jefferies maintained a Buy rating on the stock and has a €37.00 price target.
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Fabian Piasta’s rating is based on several key factors. Despite a mixed second quarter performance, Befesa S.A. managed to maintain its earnings, with an adjusted EBITDA of €57 million, reflecting a 4% year-over-year increase. This was achieved through favorable hedging prices and record-low treatment charges, which helped protect the company’s bottom line even as sales declined by 9% due to maintenance shutdowns and reduced volumes.
Management’s confirmation of guidance and the expectation of a significant volume increase in the second half of the year further support the Buy rating. The anticipated completion of maintenance work and improved visibility on earnings from higher hedging levels are expected to drive sales and adjusted EBITDA growth by 16% and 21%, respectively, in the latter half of the year. These factors collectively contribute to a positive outlook for Befesa S.A., justifying the Buy recommendation.
Piasta covers the Industrials sector, focusing on stocks such as BELIMO Holding AG, Sulzer AG, and Vossloh. According to TipRanks, Piasta has an average return of 33.8% and a 74.29% success rate on recommended stocks.
In another report released on July 21, Hauck & Aufhaeuser also maintained a Buy rating on the stock with a €40.00 price target.