Vossloh’s Growth Potential: Buy Rating Backed by Strong Backlog and Strategic Acquisition

Analyst Fabian Piasta from Jefferies maintained a Buy rating on Vossloh (0N2Z – Research Report) and keeping the price target at €55.00.

Fabian Piasta has given his Buy rating due to a combination of factors that indicate potential growth for Vossloh. Despite a challenging first quarter with a 7% year-over-year decline in sales and a significant drop in EBIT, the company’s revenue was largely in line with expectations. The guidance for the full year remains optimistic, projecting a 6.5% growth at the midpoint, driven by anticipated demand for Fastening solutions in China starting in the second quarter.
Moreover, the order intake, although slightly down, reflects a strong book-to-bill ratio, and the order backlog has increased significantly. This backlog includes substantial multi-year agreements with major clients like the German rail operator DB. Additionally, the upcoming acquisition of Sateba is expected to contribute positively to both sales and EBIT, further supporting the Buy rating.

According to TipRanks, Piasta is a 4-star analyst with an average return of 15.5% and a 61.54% success rate.