Vossloh’s Strong Financial Outlook and Growth Justify Buy Rating

Vossloh’s Strong Financial Outlook and Growth Justify Buy Rating

Fabian Piasta, an analyst from Jefferies, maintained the Buy rating on Vossloh (0N2ZResearch 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.

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