Analyst Jeff Osborne from TD Cowen maintained a Buy rating on Landis+Gyr Group AG (LGYRF – Research Report) and decreased the price target to CHF75.00 from CHF83.00.
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Jeff Osborne has given his Buy rating due to a combination of factors that highlight the positive outlook for Landis+Gyr Group AG. The company reported record bookings in the second half of 2024, driven by strong demand for grid intelligence solutions, which has significantly increased their backlog. This growth in bookings, particularly in software and services, underscores the company’s traction in the market and its potential for future revenue generation.
Additionally, the company’s guidance for FY25 indicates a slightly higher EBITDA margin than consensus, suggesting improved operational efficiency. While revenue guidance is modestly below expectations, the strategic initiatives such as the potential sale of the EMEA business and a U.S. listing are seen as potential catalysts for enhancing shareholder value. Despite some challenges, such as inventory obsolescence due to rapid adoption of new technology, the overall outlook remains positive, justifying the Buy rating.