Sell Rating for HENSOLDT AG Amid Strategic Divestment and Operational Challenges

Jefferies analyst Chloe Lemaire maintained a Sell rating on HENSOLDT AG (HAG – Research Report) today and set a price target of €60.00.

Chloe Lemaire has given her Sell rating due to a combination of factors related to HENSOLDT AG’s strategic decisions and financial performance. The company is reportedly considering selling its South African Optronics business, which contributes a small portion of the group’s sales and has been facing operational challenges. This division accounts for about 1.5% of the company’s total sales and has been struggling with lower volumes and profitability issues.
Despite the potential positive impact of divesting a lower-margin business, the South African entity’s difficulties, such as transitioning to new technology and adjusting export strategies, have affected its financial outcomes. These challenges, combined with the relatively minor scale of the business within the group, contribute to the Sell recommendation as the company seeks to focus on more profitable segments like the German Optronics business, which has shown stronger growth and margins.

In another report released on May 12, Kepler Capital also maintained a Sell rating on the stock with a €56.00 price target.