Palfinger confirmed at BUY, TP EUR 33 - Stiffer headwinds command yet another estimates and TP cut
As a consequence of Palfingers second profit warning, we have cut our target price to EUR 33 from EUR 39. The BUY rating is intact. Our analysis suggests that Palfinger shares are currently priced for returns slightly below the groups mid-cycle earningsThe combination of substantial cost increases and supply chain disruptions have aggravated in recent weeks, above all due to the spill-over effects of the war in Ukraine
The management has flagged that as of April, production of four product lines in Europe will be reduced by ca. 10%
Business in the CIS region is subject to major decline. Palfinger assumes that Russian truck production could roughly halve, with corresponding consequences for the demand for its cranes
Potential impairments of Russian assets pose a further downside risk to estimates, in our view
Palfinger provides lifting solutions for use on commercial vehicles and in the maritime field. Co. is engaged in providing loader cranes, timber and recycling cranes, marine cranes, wind cranes and hooklifts service. In addition, Co. is engaged in providing tail lifts and high-tech railway systems. Co. offers its products and services primarily to construction industry, transport logistics, public authorities, waste disposal, forestry and agriculture and railway infrastructure. In the marine business, Co. sells worldwide, primarily to customers in deep sea navigation and in the oil and gas industry. Co.'s brand is LIFETIME EXCELLENCE.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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