Draegerwerk AG & Co. KGaA: Hold Rating Amid Mixed Financial Performance and Regional Growth

Henrik Paganetty, an analyst from Jefferies, maintained the Hold rating on Draegerwerk AG & Co. KGaA (0K5E – Research Report). The associated price target remains the same with €47.00.

Henrik Paganetty has given his Hold rating due to a combination of factors affecting Draegerwerk AG & Co. KGaA’s financial performance. The company reported a notable increase in order intake, particularly driven by growth in the EMEA region, with additional demand in the Americas and APAC regions. However, this positive development was overshadowed by a slight decline in net sales, primarily due to a weaker performance in the medical division.
Despite the increase in gross margin, the company’s EBIT and EBIT margin saw a significant decrease, falling short of market expectations. Additionally, functional expenses rose, mainly due to increased personnel costs, including a one-time payment to employees in Germany. Although Draegerwerk confirmed its guidance for 2024, expecting modest net sales growth and an improved EBIT margin, these mixed results contribute to the Hold rating as the company navigates these challenges.