On Friday, BofA Securities adjusted its stance on Jungheinrich AG (ETR:JUNG_p) (JUN3:GR), upgrading the stock from Underperform to Neutral and increasing the price target to €26.00, up from the previous €24.00. The firm has grown more optimistic about the mid-term prospects for the warehousing and logistics sector, which has influenced this revised rating. The adjustment comes after the stock's significant underperformance relative to the STOXX Europe 600 Index (SXNP) year to date, with a decline of approximately 40%.
The analyst from BofA Securities highlighted that the current share price of Jungheinrich likely reflects the market's concerns about margin pressures and pricing headwinds that the company has faced. Despite these challenges, the firm believes that these issues are now accounted for in the stock's valuation.
In their commentary, the analyst pointed out that while they remain approximately 9% below the consensus estimates for Jungheinrich's 2025 adjusted EBIT (earnings before interest and taxes), they recognize that the stock price already seems to factor in investor apprehensions regarding wage inflation and the company's weak pricing power. These elements are expected to impact the company's profitability moving forward.
The updated price objective indicates a modest increase in confidence in Jungheinrich's financial performance and market position. However, the BofA Securities analyst maintains a cautious view on the company's earnings potential due to the ongoing economic pressures.
In summary, BofA Securities' new rating and price target suggest a neutral outlook on Jungheinrich AG, acknowledging the company's challenges while also recognizing the potential stabilization in the warehousing and logistics space. The firm's analysis indicates a shift in perspective, considering the broader industry context and Jungheinrich's current market valuation.
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