Vossloh’s Strong Financial Outlook and Growth Justify Buy Rating

Fabian Piasta, an analyst from Jefferies, maintained the Buy rating on Vossloh (0N2Z – Research Report). The associated price target is €55.00.

Fabian Piasta has given his Buy rating due to a combination of factors that highlight Vossloh’s promising financial outlook. The company’s fiscal year 2024 results met expectations, with management projecting a sales growth of 6%, or 26% when including Sateba, reaching approximately €1,289 billion at the mid-point, which is slightly above the consensus. This positive sales trajectory is complemented by an anticipated improvement in profit margins, with an EBIT range of €110-120 million, aligning with market expectations and suggesting a margin increase to 8.9% from the previous year’s 8.7%.
Moreover, the fourth quarter of 2024 saw a significant sales increase of 21% year-over-year, bolstered by strong performance across all segments, particularly Lifecycle Solutions, which experienced a 32% growth. The EBIT for this typically weaker quarter rose by 30% year-over-year, achieving a margin of 8.0% compared to 7.5% in the prior year. Additionally, the company’s order intake and backlog have shown healthy growth of 12% and 10% respectively, positioning Vossloh well to meet the higher end of its guidance, further justifying the Buy rating.