Rosenbauer confirmed at HOLD, TP EUR 39 - Capital Markets Day review; TP and estimates lowered
Digesting a weak starting quarter that was accompanied by a reduced guidance we have lowered our forecasts which lowers the TP to EUR 39 from EUR 42.5, while we affirm the HOLD ratingThe ambitious 2030 plans were presented in more detail at the Capital Markets Day but see little short-term catalysts.
At the CMD Rosenbauer reiterated the objectives of roughly doubling its top line to EUR 2 bn and improving the EBIT margin to 7%. Having perceived Rosenbauer as a very growth-centred company in recent years, we appreciate the commitment to a stronger focus on operational excellence.
The long lead times and fixed prices due to the tender structure leave profitability vulnerable to further cost inflation. For the share to re-rate, improved capital returns that would also induce a restoration of the track record are a required, in our view
Rosenbauer International is a holding company. Co. through its subsidiaries is engaged in the manufacture, sale and distribution of mobile fire protection and civil defense solutions. Co. maintains five business segments: vehicles, aerials, fire and safety equipment, service and spare parts/others, fire fighting components. Co.'s product portfolio includes a range of municipal fire fighting vehicles and aerials built to both European and the United States standards, series of aircraft rescue and fire fighting vehicles, industrial fire fighting vehicles, fire and safety components and equipment. Co. provides services and spare parts, instruction and training programs for its products.
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