Hold Rating for Wacker Neuson Amid Mixed Regional Performances and Adjusted Fiscal Outlook

Analyst Martin Comtesse of Jefferies maintained a Hold rating on Wacker Neuson, retaining the price target of €25.50.

Martin Comtesse’s rating is based on a combination of factors including a disappointing third quarter for Wacker Neuson, characterized by a decline in sequential sales and a disrupted recovery. This setback is largely attributed to a decrease in demand from US clients, which is influenced by ongoing trade disputes and broader macroeconomic uncertainties.
Despite these challenges, the company has seen more stable order momentum in Europe, which has helped maintain margins at 7.5%, albeit with a slight decrease from the previous quarter. Consequently, the management has adjusted their sales and margin outlook for the fiscal year 2025 to the lower end of their previous range, suggesting an expected earnings before taxes (EBT) of €146 million, which is 2% below the current consensus. These factors collectively justify the Hold rating, as they indicate a cautious outlook amid mixed regional performances.