In a report released today, Edward Hall CFA from Stifel Nicolaus maintained a Buy rating on Gerresheimer (0NTI – Research Report), with a price target of €97.00.
Edward Hall CFA has given his Buy rating due to a combination of factors, including Gerresheimer’s reiterated guidance for fiscal year 2025, which suggests a stable outlook with expected organic sales growth of 3-5%, an EBITDA margin of 22%, and EPS growth between 7.0% and 9.0%. Despite a slight miss in the first quarter’s revenue and EBITDA compared to consensus expectations, the company has shown resilience in its profitability metrics, which remain in line with the previous fiscal year.
Moreover, the company’s focus on improving free cash flow throughout the remainder of the year is seen as a positive indicator, especially given the management’s guidance for a full-year free cash flow of €0-50 million. The robust order books in tubular glass and potential revenue growth from existing contracts and production ramp-ups further support the Buy rating. While there are challenges, such as the need for significant acceleration in free cash flow in the upcoming quarters, the overall outlook and strategic initiatives provide a basis for optimism in Gerresheimer’s stock performance.
In another report released today, Jefferies also maintained a Buy rating on the stock with a €93.00 price target.