In a report released today, Fabian Piasta from Jefferies maintained a Buy rating on Sulzer AG, with a price target of CHF173.00.
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Fabian Piasta has given his Buy rating due to a combination of factors influencing Sulzer AG’s performance. Despite a mixed picture in the third quarter order intake, there is a return to organic growth, particularly with the Services segment experiencing a robust mid-teens increase. This growth is attributed to high-margin opportunities in spare parts for pumps and turbo services, which are in line with market expectations.
While overall group orders have declined, primarily due to foreign exchange headwinds and challenges in the Chinese market, the company’s Services division shows resilience. The continuous demand in the Water end-markets, despite some weaknesses in Refining and Biofuel sectors, supports the positive outlook. These elements combined suggest a favorable long-term growth trajectory for Sulzer AG, justifying the Buy rating.