Analyst Henrik Paganetty from Jefferies maintained a Hold rating on Draegerwerk AG & Co. KGaA (0K5E – Research Report) and keeping the price target at €47.00.
Henrik Paganetty has given his Hold rating due to a combination of factors affecting Draegerwerk AG & Co. KGaA’s financial performance. The company reported a slight increase in order intake, which rose by 6.1% net of currency effects, indicating some positive momentum. However, this was contrasted by a decline in net sales by 1.2% during a typically weak first quarter, and a significant drop in EBIT from €15 million to €0.4 million, resulting in a much lower EBIT margin of 0.1% compared to 2.0% the previous year.
Despite these challenges, Draegerwerk maintains its guidance for 2025, expecting a modest increase in net sales and an improved EBIT margin. However, uncertainties such as the unpredictable impact of US tariff policies and potential exchange rate fluctuations pose risks to this outlook. These mixed signals likely contributed to Henrik Paganetty’s decision to issue a Hold rating, reflecting a cautious stance amid both positive and negative indicators.