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 77.00 to EUR 71.00.
Knaus Tabbert delivered record results in Q4 that showcased its operational potential in a more normalised environment. Performance was highlighted by the first double digit AEBITDA margin (11%) since Q1/21, and KTA brass look for good business momentum to continue this year, thanks to high industry demand, a €1.3bn order backlog, and improved capacity utilisation with sufficient workers. Results topped 2022 earnings guidance and the street, which should bolster market confidence in KTA’s ability to manage a still tricky supply chain environment. Our price target is now €71 (old: €77) after increasing the risk free rate in our model to 2.4% (1.5%) to track the 10y German bund. We remain Buy-rated on KTA and believe the company can continue to expand market share and margins with its wide variety of brands and models.