On Wednesday, Deutsche Bank adjusted its outlook on Norma Group SE (NOEJ:GR) stock, a company specialized in engineered joining technology solutions, by lowering the price target to €15.00, down from the previous €16.00. Despite this change, the firm maintained a Hold rating on the stock.
Norma Group SE recently disclosed its second-quarter results for 2024, which aligned with the expectations of the market. The company's performance in Water Management across the Americas remained strong, but its operations in Europe, the Middle East, Africa (EMEA), and Asia-Pacific (APAC) regions faced challenges. These difficulties were attributed to reduced demand within the industry, influenced by the current economic downturn.
The company has confirmed its financial outlook for the full year, although it anticipates that sales will likely reach the lower spectrum of the forecasted range. This projection is due to decreased volume in the Industrial Application and Mobility & New Energy segments.
However, Norma Group's management expressed a positive outlook regarding profitability and cash flow, crediting the "Step Up" program for lowering personnel and logistic expenses.
Looking ahead, Norma Group anticipates a resurgence in APAC volumes during the second half of the year, which is expected to improve the utilization of fixed costs.
While the second half margins are predicted to fall short of the first half, they are still projected to fit within the full-year guidance range. This alignment should enable Norma Group to fulfill its financial targets for the year.
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