Krones AG : We continue to like defensive growth going into 2025
We reiterate our positive view on Krones and set our TP to € 157. We like 1/ its defensive growth profile (beverage related), 2/ its net cash balance sheet (2024e: € 405m before leases and financial assets), 3/ its high FCF yields. (7.6-10.6% for 2024-2026e). Krones is undervalued with an EV/EBIT of 8.7x, while ~11x is fair value, in our view. With this note, given a change in analyst responsibility, Krones’ coverage has been transferred and the estimates have been updated.Krones maintains three segments: machines and lines for product filling and decoration, which provides product treatment technology, systems engineering, labelling technology, inspection technology, filling technology, cleaning technology, plastics technology, packing and palletizing technology, and conveyor technology; machines and lines for beverage production/process technology, which provides brewhouse and filtration technology, information technology, internal logistics, and materials flow technology; and machines and lines for the low output range, which provides labelling technology, filling technology, plastics technology, packing and palletising technology, and conveyor technology.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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