Hendrik Stahlschmidt, an analyst from Stifel Nicolaus, maintained the Hold rating on Rational (0FRJ – Research Report). The associated price target is €860.00.
Hendrik Stahlschmidt has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Rational’s financial outlook. The company reported a 6% increase in revenue for FY24, driven by strong sales in the iVario segment and significant contributions from the European and North American markets. However, despite this growth, the outlook remains cautious due to the challenging economic environment.
Rational’s EBIT margin has returned to pre-crisis levels, supported by a 250 basis points increase in the gross profit margin. While the proposed dividend reflects an 11% increase over the previous year, the company anticipates mid-single-digit sales growth and a slightly lower gross profit margin moving forward. Additionally, potential impacts from US tariffs and inflationary pressures on consumer health introduce uncertainties that warrant a Hold rating.