SFS Group AG: Emerging From the Cycle Trough With Renewed Organic Growth and Resilient Margins – Initiating/Confirming Buy

SFS Group AG (SFSN) has received a new Buy rating, initiated by Jefferies analyst, Fabian Piasta.

Fabian Piasta has given his Buy rating due to a combination of factors related to SFS Group AG’s recent operational performance and improving demand backdrop. He notes that the company has returned to organic growth in the second half of 2025 despite a still difficult macro environment, with sales expanding above both reported levels and market expectations. This recovery is underpinned by stabilising industrial manufacturing trends and incremental contributions from electronics and hardware-related activities, partially offsetting ongoing weakness in some automotive segments.

Piasta also highlights that inventory destocking appears largely behind the company, suggesting that the downturn in key divisions such as Fastening Systems is nearing an end and that construction markets may be close to a trough. Distribution & Logistics has resumed healthy growth, strengthening the group’s overall revenue base. In addition, full-year 2025 sales slightly exceeding guidance and an implied adjusted EBIT above prior forecasts indicate resilient profitability, supporting the view that margins can be maintained at solid levels. Together, these elements underpin his conviction that SFS is emerging from the low point in its cycle and justify a positive long-term investment stance, reflected in the Buy recommendation.

Piasta covers the Industrials sector, focusing on stocks such as SFS Group AG, BELIMO Holding AG, and Bossard Holding AG. According to TipRanks, Piasta has an average return of 29.0% and an 83.33% success rate on recommended stocks.

In another report released on January 12, Kepler Capital also maintained a Buy rating on the stock with a CHF125.00 price target.