Jefferies analyst Constantin Hesse maintained a Hold rating on PIERER Mobility AG (PKTM – Research Report) today and set a price target of CHF28.00.
Constantin Hesse has given his Hold rating due to a combination of factors related to PIERER Mobility AG’s current financial strategies and restructuring plans. The company is in the process of raising €350 million in new capital, with a portion coming from existing shareholders and the rest through a contribution in kind from Pierer Bajaj AG. This capital increase is expected to significantly boost the company’s share capital, but the outcome is contingent on shareholder approval at an upcoming extraordinary general meeting.
Additionally, PIERER Mobility AG is navigating through a restructuring plan that involves a substantial cash payout to creditors, requiring around €550 million. This financial maneuver, alongside the need for additional funds to support a production ramp-up, indicates a period of financial adjustment for the company. Given these developments, Hesse’s Hold rating reflects a cautious stance, acknowledging both the potential and the risks associated with the company’s current financial undertakings.
According to TipRanks, Hesse is an analyst with an average return of -9.0% and a 35.75% success rate. Hesse covers the Industrials sector, focusing on stocks such as Nordex, NEL ASA, and PowerCell Sweden AB.