Kontron AG, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Martin Comtesse from Jefferies maintained a Buy rating on the stock and has a €27.00 price target.
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Martin Comtesse has given his Buy rating due to a combination of factors that highlight Kontron AG’s improving financial health and strategic focus. The company’s second-quarter results for 2025 show a continued enhancement in profitability, driven primarily by its Software & Solutions segment, which remains the primary catalyst for growth. Despite a 7% year-over-year decline in sales, attributed to the phasing out of unprofitable business segments and the deconsolidation of JUMPtec, the underlying EBITDA margin has improved to a robust 12.6%.
Comtesse notes that while the top-line performance was mixed, the company’s profitability has notably increased, with a 166 basis point improvement year-over-year. This improvement is largely due to a better sales mix, with high-margin software solutions leading the way, and the elimination of less profitable legacy contracts. Additionally, the positive shift in operating cash flow and the strong year-to-date stock performance underscore investor confidence in Kontron’s strategic positioning, particularly in the 5G sector.
Comtesse covers the Technology sector, focusing on stocks such as Bechtle Aktiengesellschaft, INFICON Holding AG, and CANCOM SE. According to TipRanks, Comtesse has an average return of -1.8% and a 38.93% success rate on recommended stocks.
In another report released today, Warburg Research also maintained a Buy rating on the stock with a €28.40 price target.