Palfinger confirmed at BUY, TP EUR 44 - Encouraging mid- and long-term growth targets
Q3 results that were confirmative for the FY 21 guidance and Palfinger gave a comforting longer-term outlook at the Capital Markets DayPalfinger also presented a more optimistic growth trajectory until 2024, raising the revenue target to EUR 2.3 bn from EUR 2.0 bn. However, as the growth ambitions require multiple measures/projects that will spur structural costs the 10% EBIT margin threshold is unlikely to be reached earlier
We have marginally reduced our operating profit projections owing to cost inflation and supply chain inefficiencies but broad-based demand strength, high capacity utilisation and convincing pricing power should safeguard earnings growth
The unwinding of the cross-shareholding with Sany, which we regard as a potential trigger, is still in the making
We affirm the BUY recommendation on Palfinger amid a slight target price increase to EUR 44 from EUR 42.5
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.
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