Jefferies analyst Martin Comtesse maintained a Hold rating on Wacker Neuson (0K11 – Research Report) today and set a price target of €16.00.
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Martin Comtesse has given his Hold rating due to a combination of factors influencing Wacker Neuson’s current financial performance. The company experienced a significant decline in sales, particularly in Europe and Asia, with a 17% year-over-year drop in the first quarter. This decline was accompanied by a weak EBIT margin of 2.5%, which was anticipated due to the under-absorption of fixed costs.
Despite these challenges, there are positive signs of recovery, as indicated by a gradual increase in order intake since the beginning of the year. The company’s restructuring efforts, including a reduction in headcount, are expected to improve the EBIT margin by approximately 100 basis points by the end of fiscal year 2025. However, any substantial benefits from external factors, such as the German fiscal package, are not expected to impact the company until 2026. Therefore, Martin Comtesse maintains a Hold rating, reflecting a cautious optimism for gradual improvement in the company’s performance.
According to TipRanks, Comtesse is a 2-star analyst with an average return of 0.0% and a 44.67% success rate.