Analyst Constantin Hesse from Jefferies maintained a Hold rating on PVA TePla and keeping the price target at €19.00.
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Constantin Hesse has given his Hold rating due to a combination of factors influencing PVA TePla’s recent performance. The company’s second-quarter results were mixed, with sales and EBIT falling short of expectations by approximately 10% and 40%, respectively. Despite these setbacks, there was a notable recovery in order intake, although the book-to-bill ratio remained below one, indicating potential challenges in converting orders into revenue.
Additionally, while the gross margin showed a slight improvement compared to the previous quarter, this was counterbalanced by increased investments. The company’s cash position was also weaker, impacted by lower earnings and higher capital expenditures. Although there was an uptick in orders, particularly in the semiconductor and industrial segments, further clarity on order momentum is needed to provide a clearer outlook for the stock. As a result, Hesse has opted for a Hold rating, awaiting more definitive signs of sustained improvement.