In a report released today, Constantin Hesse from Jefferies maintained a Buy rating on Fuchs Petrolub, with a price target of €56.00.
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Constantin Hesse has given his Buy rating due to a combination of factors influencing Fuchs Petrolub’s current market position. Despite the company confirming its Q2 sales and EBIT preliminaries, it reported a strong free cash flow, which is a positive indicator of financial health. The recent correction in the share price presents an attractive entry point for investors, especially following the acquisition of new contracts, which could drive future growth.
Furthermore, Hesse remains optimistic about the company’s prospects due to expected solid cash generation and limited capital expenditure requirements in the coming years. Although the economic environment remains challenging, particularly in Europe and the automotive sector, the company’s strategic initiatives, such as the new MT guidance under FUCHS100, are seen as potential catalysts for future performance. The focus on the trading environment and any incremental guidance risks will be crucial in assessing the company’s trajectory.
In another report released on July 24, Berenberg Bank also maintained a Buy rating on the stock with a €48.00 price target.