Sulzer AG: Resilient Growth Potential Amidst Sector Challenges

Sulzer AG (SULZF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Fabian Piasta from Jefferies maintained a Buy rating on the stock and has a CHF189.00 price target.

Fabian Piasta has given his Buy rating due to a combination of factors that highlight Sulzer AG’s potential for growth and stability. Despite a slower start in orders for the first quarter of 2025, which was anticipated due to a significant order shift and uncertainties in the US Oil & Gas sector, the company’s services segment continues to perform robustly. The demand from the turbine verticals remains strong, contributing to a healthy increase in service orders.
Furthermore, the company’s backlog has grown, indicating a positive outlook for meeting this year’s guidance with an expected order growth of 5% for the remaining year. While there are challenges, such as the delayed Chemtech project impacting quarterly comparisons, Sulzer AG’s solid position in domestic manufacturing and a substantial service share in the US market provide a stable foundation for future performance. These factors collectively support the Buy rating, as they suggest resilience and potential for achieving the company’s growth targets.