On Tuesday, Deutsche Bank raised the stock price target for GEA Group AG (G1A:GR) (OTC: GEAGY) to EUR54.00, up from the previous EUR51.00, while maintaining a Buy rating on the stock. The adjustment follows GEA's announcement of its new medium-term strategy, MISSION 30, during its Capital Markets Day (CMD).
The strategy outlines financial targets including an organic revenue compound annual growth rate (CAGR) of over 5% and an EBITDA margin guidance corridor of 17-19%, which aligns with Deutsche Bank's predictions and represents a step up from the former MISSION 26 objectives.
GEA Group, a leading technology supplier for the food processing industry, also provided a sneak peek at some of its third-quarter figures last Friday, ahead of the full Q3/24 report set to be released on November 6. The company reported flat year-over-year sales, with a slight organic increase of 1.4%. EBITDA before restructuring expenses saw a 5% year-over-year rise, resulting in a 16.1% EBITDA margin, which is a 74 basis points improvement from the previous year.
The company's Q3/24 order intake showed a year-over-year increase of 4%, with a 7% organic growth rate. In order to meet Deutsche Bank's full-year 2024 estimates, GEA's order intake for Q4/24 is now expected to rise by 9% year-over-year. This forecast is based on the preliminary figures released and the company's updated financial targets under its MISSION 30 strategy.
The positive outlook on GEA's financial targets and the recent preliminary figures reflect the company's robust performance and potential for growth. The raised price target by Deutsche Bank indicates confidence in GEA's strategic direction and its ability to achieve the newly set objectives. Investors will be looking forward to the detailed third-quarter results in early November for further insights into the company's progress and financial health.
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