Martin Comtesse, an analyst from Jefferies, maintained the Sell rating on Friedrich Vorwerk Group SE. The associated price target remains the same with €68.00.
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Martin Comtesse has given his Sell rating due to a combination of factors that, in his view, overshadow the strong reported figures. Although Friedrich Vorwerk Group SE delivered record full‑year results with revenue growth above 40% and a significant EBITDA margin expansion well ahead of guidance, he notes that these numbers were heavily supported by an exceptionally strong fourth quarter, benign weather conditions, project completions, and robust joint venture contributions, all of which may not be sustainable. Despite the impressive profitability and a solid improvement in cash and net liquidity positions, the quality and visibility of future earnings appear less compelling when looking beyond the headline results.
At the same time, Martin points out that the order backlog and order intake both declined year‑on‑year, signaling a potential slowdown in future business activity even as the total volume of newly acquired projects increased. This divergence raises concerns about the durability of the company’s growth trajectory and the balance between near‑term strength and medium‑term pipeline health. Additionally, the 15% increase in headcount, while supporting last year’s expansion, could weigh on margins if revenue momentum normalizes. Taken together, these factors suggest to him that the current valuation does not adequately reflect the risks to future growth and earnings, leading to a Sell recommendation.
Comtesse covers the Technology sector, focusing on stocks such as Kontron AG, CANCOM SE, and adesso AG. According to TipRanks, Comtesse has an average return of -2.7% and a 41.52% success rate on recommended stocks.