Monday, Berenberg reiterated its Buy rating and EUR55.00 price target on JOST Werke AG (JOST:SW) shares, following the company's capital markets day held on September 10. During the event, JOST Werke's CEO Joachim Dürr outlined the company's mid-term growth ambitions, emphasizing mergers and acquisitions (M&A) as a key component of the group's strategy moving forward.
The CEO's statements during the capital markets day reinforced Berenberg's investment thesis that M&A activities will play a significant role in JOST's strategy. The firm highlighted that its current financial model for JOST does not account for any potential M&A.
Still, the company's sales and adjusted EBIT targets for 2030 are 56% and 52% above Berenberg's estimates, respectively. Without the impact of M&A, these figures would stand at 23% and 20% above the firm's current projections.
Berenberg's analysis suggests that if JOST Werke were to realize an M&A contribution of approximately EUR450 million, this could potentially increase the company's price target by around EUR6. This perspective aligns with the CEO's ambition to bolster JOST's growth through strategic acquisitions, which could significantly enhance the company's financial performance by the end of the decade.
JOST Werke's focus on M&A as a growth lever is a strategic choice that could reshape the company's trajectory and financial outcomes. The CEO's announcement at the capital markets day has provided a clearer picture of the company's long-term plans, aligning with Berenberg's positive outlook on the stock.
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