Analyst Adrian Pehl of Stifel Nicolaus maintained a Hold rating on Rational (0FRJ – Research Report), retaining the price target of €860.00.
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Adrian Pehl has given his Hold rating due to a combination of factors influencing Rational’s current and future performance. The company has reported strong Q4 results, with revenue and EBIT figures surpassing market expectations. Revenue grew significantly, driven by robust performance in Europe and North America, while the EBIT margin benefitted from stable costs. However, despite the positive financial outcomes, Pehl remains cautious due to the lack of guidance for 2025, which Rational is expected to provide at the end of March.
Another reason for the Hold rating is the uncertainty surrounding Rational’s growth prospects in the North American market. Although this region presents significant opportunities, there are potential threats from US tariffs, which could impact profitability. Rational’s management has proposed strategies to mitigate these risks, such as price adjustments and establishing local production. However, these measures will take time to implement, and the reaction of local competitors remains uncertain. As a result, Pehl has decided to maintain a neutral stance on the stock until further clarity is provided.
In another report released on January 21, Deutsche Bank also maintained a Hold rating on the stock with a €895.00 price target.