Analyst Martin Comtesse of Jefferies maintained a Buy rating on Kontron AG (0L9J – Research Report), retaining the price target of €27.00.
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Martin Comtesse has given his Buy rating due to a combination of factors that highlight Kontron AG’s strong financial performance and growth potential. The company has demonstrated a significant improvement in sales quality, which has resulted in an increased gross margin of 44.0%, up from 41.3% the previous year. This improvement is largely driven by the Software + Solutions segment, which now accounts for 35% of sales and boasts an impressive EBITDA margin of 19.9%.
Moreover, Kontron AG’s EBITDA has shown robust growth, reaching €48 million, which is 36% higher year-over-year and 19% above the company-compiled consensus. The company’s net income also rose to €20.1 million, surpassing the consensus estimate of €14.1 million. Additionally, the order backlog has increased to €2.2 billion, with a book-to-bill ratio of 1.28x, indicating strong future demand. The company’s guidance for FY25 remains optimistic, with expected sales of €1.9-2.0 billion and at least €220 million in EBITDA, driven by continued growth in Software and Solutions, increased defense spending, and the expansion of wall boxes.
According to TipRanks, Comtesse is a 2-star analyst with an average return of 0.0% and a 44.67% success rate.
In another report released on April 22, Kepler Capital also maintained a Buy rating on the stock with a €25.00 price target.