In a report released today, Constantin Hesse from Jefferies maintained a Buy rating on PVA TePla (0NL1 – Research Report), with a price target of €18.00.
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Constantin Hesse has given his Buy rating due to a combination of factors that highlight PVA TePla’s solid performance despite a challenging environment. The company’s first-quarter results exceeded expectations in terms of EBIT, with order levels slightly surpassing estimates. This was supported by a robust gross margin, which was 270 basis points ahead of projections, helping to counterbalance increased investments.
Additionally, the order intake showed a positive trend, rising 9% year-over-year and 6.1% sequentially, driven by strong demand in the industrials and semiconductor segments, particularly in metrology. Although revenue from the semiconductor segment faced a decline due to project timing, the overall outlook remains optimistic with the company reaffirming its 2025 guidance. Despite weaker cash flow due to higher capital expenditures, the focus remains on the potential for increased order momentum, particularly in metrology, which could further bolster the stock’s performance.