Zumtobel confirmed at BUY, TP EUR 9.0 - Target price raised on the back of stronger Q4 outlook
Shortly after its Q3 results, Zumtobel announced surprisingly strong financial targets for FY 20/21 calling for sales of EUR 1.03-1.04 bn and adj. EBIT of EUR 36-43 mnQ4 adj. EBIT should improve to ~EUR 12 mn (vs. a recent indication of a slightly positive figure), or a margin of 4.4% vs. 2.7% in the comparable period
The drivers are better top-line dynamics (stronger demand helped by price increases) and higher raw material prices creeping in slower than so far assumed, implying that more of the positive impact of the USD depreciation on the purchasing bill can be retained.
We reiterate the BUY rating with a raised target price of EUR 9.0 (EUR 8.0)
The BUY case rests on 1) an improving top line momentum, 2) decent cost control allowing for operating leverage to turn positive and 3) a very attractive valuation
Zumtobel is a lighting company based in Austria. Co. offers a full-line range of integral professional lighting solutions, luminaires, light management systems and lighting components for indoor and outdoor applications. Co.'s business activities are carried out primarily through its subsidiary groups: the Lighting Segment (lighting solutions, interior and exterior lighting, electronic-digital lighting and room management systems) and the Components Segment (electronic and magnetic lighting components).
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.