Analyst Martin Comtesse from Jefferies maintained a Hold rating on CANCOM SE (0O0F – Research Report) and keeping the price target at €26.00.
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Martin Comtesse’s rating is based on several financial indicators showing a mixed performance for CANCOM SE. While the company saw a 5% year-over-year increase in sales for the fourth quarter of 2024, their EBITDA dropped by 26% during the same period, indicating weaker margins compared to the previous year. This decrease in profitability is largely attributed to not achieving expected volume kick-backs due to challenging market conditions.
Additionally, the company’s management had previously adjusted their annual guidance downward due to uncertainties arising from political factors in Germany and a sluggish macroeconomic environment. Although sales figures met the higher end of expectations, profit projections remained at the lower end. Despite an improvement in operating cash flow, the market remains cautious as they await the new guidance for fiscal year 2025, expected with the audited results in March. These elements together suggest a Hold rating as investors may wish to see how the company’s strategy unfolds in the coming year.