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Draegerwerk AG & Co. KGaA: Hold Rating Amid Strong Order Intake and Profitability Concerns

Draegerwerk AG & Co. KGaA: Hold Rating Amid Strong Order Intake and Profitability Concerns

Analyst Henrik Paganetty of Jefferies maintained a Hold rating on Draegerwerk AG & Co. KGaA, retaining the price target of €67.00.

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Henrik Paganetty has given his Hold rating due to a combination of factors surrounding Draegerwerk AG & Co. KGaA’s recent performance. The company reported a strong order intake for the second quarter, with a notable increase from the previous year, particularly in the Medical Division, which benefited from a significant multi-year order from Mexico. This positive development indicates potential future growth and stability in their order book.
However, despite the impressive order intake, Draegerwerk faced challenges in its net sales and margins. The second quarter saw a slight decline in net sales compared to the previous year, and the gross margin also decreased due to a weaker sales performance, changes in product mix, and external factors like tariffs and currency effects. Additionally, the company’s EBIT dropped significantly, which raises concerns about its profitability in the short term. These mixed results led Paganetty to maintain a Hold rating, reflecting a cautious stance while acknowledging the company’s potential for future improvement.

According to TipRanks, Paganetty is ranked #3199 out of 9820 analysts.

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