Martin Comtesse, an analyst from Jefferies, maintained the Buy rating on Kontron AG. The associated price target remains the same with €27.00.
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Martin Comtesse has given his Buy rating due to a combination of factors that highlight Kontron AG’s potential for profitability despite recent challenges. Although the company has lowered its revenue guidance for FY25 by 6% to €1.7 billion, it maintains its operational EBITDA target of €220 million. This indicates a strategic shift towards a more profitable sales mix, particularly with strong growth in sectors like railway infrastructure and defense, which boast high margins.
Despite the preliminary Q3 figures showing a decline in sales growth and a slight dip in EBITDA margin, the company’s focus on profitability and its ability to meet bottom-line targets are seen as positive signs. The recent pressure on the stock, largely due to market anticipation of a profit warning, presents a buying opportunity as the confirmation of profit targets is expected to restore market confidence. The upcoming detailed Q3 report may further clarify the company’s financial health and support the Buy rating.
In another report released on October 17, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a €29.00 price target.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 0L9J in relation to earlier this year.