Analyst Constantin Hesse from Jefferies maintained a Buy rating on Fuchs Petrolub and keeping the price target at €58.00.
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Constantin Hesse has given his Buy rating due to a combination of factors despite the weak Q2 results and adjusted outlook for Fuchs Petrolub. The company’s preliminary EBIT for the second quarter was 10% below consensus, primarily due to a challenging economic environment. This has led to an adjustment in the FY25 guidance, aligning sales and EBIT with FY24, which is 5% below the FY consensus. However, Hesse remains optimistic about Fuchs Petrolub’s future prospects.
Key catalysts for this positive outlook include the anticipated new MT guidance announcement under the FUCHS100 initiative. Additionally, the company is expected to continue generating solid cash flow with minimal capital expenditure requirements in the coming years. Despite the current economic challenges, Fuchs Petrolub’s valuation at 16x PE 12-month forward remains below its historical average, making it an attractive investment opportunity according to Hesse.