First Berlin Equity Research has published a research update on Knaus Tabbert AG (ISIN: DE000A2YN504). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from EUR 87.00 to EUR 77.00.
Abstract
We are revising our estimates and target price following last week’s guidance update. From a fundamental standpoint, we like the KTA stock due to: (1) its intriguing valuation at 4.7x 2023 EBIT; and (2) the likelihood that stubborn chassis supply chain issues are easing, which can allow the company to focus on excellent underlying demand. While no one can pretend to able to call a bottom in the stock (-53% YTD) amidst today’s global uncertainties, we believe the shares have strong rebound potential thanks to: (1) KTA’s massive order backlog; (2) growing production capacity with a secured workforce; and (3) resilient market demand. Our adjusted DCF model now reflects lowered 2022 FBe and points to a €77 target price (old: €87). Our rating remains Buy.
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