Geberit AG (GEBN – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Priyal Woolf from Jefferies upgraded the rating on the stock to a Buy and gave it a CHF710.00 price target.
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Priyal Woolf has given his Buy rating due to a combination of factors that suggest Geberit AG is well-positioned to benefit from improving construction prospects in Europe. The company’s strong market presence, particularly in Germany, and its reputation for quality with sector-leading margins and returns, make it a key beneficiary of the anticipated recovery in investor sentiment. The analyst notes that while current consensus estimates are reasonable, a sharper recovery could provide additional volume growth opportunities.
Furthermore, Geberit’s pricing power and robust financial profile, including a high return on capital employed and free cash flow, offer reassurance amid uncertain cost conditions. Despite being one of the more expensive stocks in the sector, its valuation is supported by superior fundamentals and a compelling relative value on dividend yield. The analyst’s increased price target reflects these strengths and suggests a significant upside potential, reinforcing the Buy recommendation.
In another report released on May 12, Berenberg Bank also maintained a Buy rating on the stock with a CHF660.00 price target.