Palfinger confirmed at HOLD, TP EUR 28 - Sea recovery + Land uncertainty = transition year
In the aftermath of Palfingers record year 2019, which however ended on a rather soft note with 4Q operating earnings falling short of expectations, we have an unchanged view on the investment case. However, we have revised our FY 20e earnings scenario from a slight increase to a moderate decline. On a positive note, we would like to highlight that the turnaround of marine cranes operations becomes ever more tangible. Management flagged order intake to be up some 40% in FY 19 and eyes a revenue inflection as of 2Q as well as a positive earnings contribution in FY 20e. In contrast, following a declining order intake in 2H 19, the outlook for the Land segment is arguably rather muted. While growth might be generated in non-European markets (e.g. North America and LatAm), the company acknowledged softer demand trends in Europe. In turn, this implies a weaker regional (European cranes usually technically more sophisticated) and product (i.e. smaller cranes) mix. Bearing these adverse factors in mind and considering the groups earnings dependence on truck cranes makes us stay on the sidelines. We confirm the HOLD recommendation and the target price of EUR 28.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.