On Wednesday, Barclays initiated coverage on Andritz AG (ANDR:AV) (OTC: ADRZF), an industrial conglomerate, with an Equalweight rating and a price target of €61 per share. This target suggests a modest 5% upside potential from the current market price.
Andritz operates across multiple sectors, holding top-three positions in its four main business units: Pulp & Paper, Metals, Hydro, and Environment & Energy (E&E). These divisions are noted for their individual market cycles and limited inter-division synergies.
Barclays' outlook is slightly cautious, with revenue and EBITA forecasts for the year 2025 that are moderately below the market consensus. The firm anticipates the most significant downside risk to be within the Pulp & Paper sector, which could see a potential decline of approximately 25%.
The analyst's commentary highlighted that while Andritz's valuation multiples appear attractive, the firm does not foresee immediate factors that would significantly alter the market's valuation of the stock in the near term. The price target of €61 reflects this tempered expectation of stock performance.
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