Jefferies analyst Chloe Lemaire maintained a Sell rating on HENSOLDT AG today and set a price target of €60.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Chloe Lemaire’s rating is based on a combination of factors that suggest caution regarding HENSOLDT AG’s stock performance. Despite a better-than-expected increase in sales and EBITDA, the company’s operational restructuring is negatively impacting the EBITDA margin in their Sensors division, which has seen a decline. This indicates potential challenges in maintaining profitability in this segment.
Additionally, while there is some improvement in the Optronics sector, particularly in the German market, the overall outlook remains uncertain. The reiterated guidance for FY25 and the updated long-term view for 2030 do not seem to alleviate concerns about the company’s ability to sustain growth and profitability, leading to the Sell rating.
Lemaire covers the Industrials sector, focusing on stocks such as MTU Aero Engines, Airbus Group SE, and Rheinmetall. According to TipRanks, Lemaire has an average return of 38.4% and an 89.68% success rate on recommended stocks.
In another report released on July 22, Morgan Stanley also maintained a Sell rating on the stock with a €78.00 price target.