Strategic Realignment and Leadership Transition Boost Landis+Gyr’s Prospects Amid Market Challenges

Analyst Jeff Osborne of TD Cowen maintained a Buy rating on Landis+Gyr Group AG (LGYRF – Research Report), with a price target of CHF83.00.

Jeff Osborne has given his Buy rating due to a combination of factors surrounding Landis+Gyr Group AG’s recent strategic decisions and market positioning. The company’s new management has undertaken a strategic review that led to the decision to exit their non-core electric vehicle charging business, which has been negatively impacting their margins. This move is expected to make the EMEA business more attractive for potential divestment opportunities, thus enhancing the company’s overall financial health.
Additionally, despite a lowered FY24 guidance due to weaker demand in EMEA and the Americas, Osborne views the revised guidance as conservative and a result of the new management’s alignment with current market conditions. The transition to new leadership, including a CEO and heads for EMEA and the Americas, suggests a potential for more realistic and achievable financial targets. Furthermore, the expectation of a book-to-bill ratio greater than 1x in the Americas and progress on a U.S. listing indicates positive momentum for the company’s future performance.

According to TipRanks, Osborne is a 3-star analyst with an average return of 2.7% and a 41.09% success rate. Osborne covers the Technology sector, focusing on stocks such as Cerence, NEXTracker, Inc. Class A, and Enphase Energy.