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Knorr-Bremse shares target raised by Berenberg on divestment plan progress

EditorEmilio Ghigini
Published 07/15/2024, 04:20 AM
KBX
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On Monday, Knorr-Bremse AG (KBX:GR), a leading manufacturer of braking systems, saw its shares target increased by Berenberg from EUR80.00 to EUR84.00, while the firm maintained a Buy rating on the stock. This adjustment comes after a roadshow with the company's CFO, Frank Weber, which took place in Paris in mid-June.

During the event, it was conveyed that Knorr-Bremse is actively pursuing its divestment strategy, having already identified approximately EUR700 million in revenue for potential sale.

Despite facing challenges within its Commercial Vehicle Systems segment, the company has expressed confidence in achieving its 2024 sales targets ranging between EUR7.7 billion and EUR8 billion, along with an anticipated operating margin of 11.5% to 12.5%.

The roadshow served to reinforce the analyst's positive outlook on Knorr-Bremse's operational strategy and future financial performance. The company's proactive approach to its divestment plan appears to be a key factor in the analyst's decision to raise the price target.

Knorr-Bremse's guidance for 2024 remains firm, suggesting a steady path ahead for the company amidst a dynamic market environment. The firm's confidence in meeting these targets reflects an optimistic perspective on its ability to navigate through the current headwinds.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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