Strong Financial Performance and Robust Demand Drive Buy Rating for Sulzer AG

Jefferies analyst Fabian Piasta maintained a Buy rating on Sulzer AG (SULZF – Research Report) today and set a price target of CHF156.00.

Fabian Piasta has given his Buy rating due to a combination of factors, including Sulzer AG’s strong financial performance in FY24. The company reported results that exceeded consensus expectations in several key areas, such as sales, operational EBIT, and order intake. This performance was driven by robust demand in the Energy and Infrastructure sectors, leading to a significant increase in sales and improved margins.
Additionally, Sulzer’s Services division experienced a notable rise in sales, supported by consistent demand across various markets, maintaining a strong margin. The Chemtech segment also showed impressive growth, with sales increasing significantly and achieving a record margin. The company’s solid backlog and steady demand in the US and APAC regions further underpin its positive outlook, with guidance suggesting continued growth in FY25. These factors collectively contribute to the Buy rating assigned by Fabian Piasta.