First Berlin Equity Research has published a research update on Knaus Tabbert AG (ISIN: DE000A2YN504). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 77.00 price target.
Second quarter reporting was close to our recently adjusted targets, and as expected, earnings were well below the prior year figures, due to ongoing motorised chassis supply bottlenecks. The order backlog remained high at €1.4bn, thanks to order intake of some 6.2k units in Q2. The production mix still leaned towards caravans to mitigate the chassis bottlenecks, which contributed to the lower Y/Y profitability. From a fundamental standpoint, we like the KTA stock due to: (1) its intriguing valuation at 5.6x 2023 EBIT; and (2) the likelihood that stubborn chassis supply chain issues are easing, which will allow the company to focus on excellent underlying demand. We remain Buy-rated on Knaus Tabbert with a €77 target price.