Jefferies analyst Chloe Lemaire maintained a Buy rating on RENK Group AG (R3NK – Research Report) today and set a price target of €44.00.
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Chloe Lemaire has given her Buy rating due to a combination of factors surrounding RENK Group AG’s performance and future prospects. The company anticipates a strong order intake for the first quarter, maintaining a book-to-bill ratio at the higher end of the expected range, which suggests robust demand. The Vehicle Mobility Solutions (VMS) segment is particularly driving this demand, especially with the high need for spare parts for the Leopard 2 in Europe.
Furthermore, the Marine business is also experiencing strong orders, despite some project delays. RENK Group AG’s revenue growth is projected to slightly surpass consensus expectations for the full year, with a forecasted increase of 15%. The production facilities in Augsburg and Muskegon are performing well, with production targets on track. Management has reaffirmed their guidance for 2025, indicating confidence in the company’s strategic direction, even as they await further potential developments from upcoming budget discussions at the NATO summit.
Lemaire covers the Industrials sector, focusing on stocks such as Airbus Group SE, Rolls-Royce Holdings, and BAE Systems. According to TipRanks, Lemaire has an average return of 33.5% and an 88.19% success rate on recommended stocks.
In another report released on April 15, Berenberg Bank also maintained a Buy rating on the stock with a €54.50 price target.