In a report released today, Martin Comtesse from Jefferies maintained a Buy rating on Kontron AG (0L9J – Research Report), with a price target of €27.00.
Martin Comtesse’s rating is based on a combination of factors that indicate potential growth for Kontron AG despite recent challenges. The company faced a softer-than-expected year-end, primarily due to ongoing weaknesses in solar inverters and delays in wall box roll-outs. However, the firm has maintained its FY25 guidance, projecting sales between €1.9-2.0 billion and a minimum EBITDA of €220 million, suggesting confidence in future performance.
Despite the slow year-end, the Software and Solutions segment continues to perform robustly, showing significant year-over-year growth. Additionally, the backlog has increased, with a book-to-bill ratio of 1.23x, indicating strong future demand. The proposed dividend has also seen a substantial increase of 20% year-over-year, reflecting a positive outlook. These factors contribute to Martin Comtesse’s Buy rating for Kontron AG, as the company is poised for growth driven by its software segment and strategic initiatives.