Lars Kjellberg, an analyst from Stifel Nicolaus, maintained the Buy rating on SIG Group AG (SCBGF – Research Report). The associated price target is CHF20.00.
Lars Kjellberg has given his Buy rating due to a combination of factors that highlight SIG Group AG’s strong performance and future potential. The company exceeded market expectations with its Q4 and FY24 EBITDA, showing an 8% and 2% beat against consensus, respectively. This was accompanied by better-than-expected top-line growth, driven by strong performances in Europe and the IMEA region, which offset challenges in the Americas.
Furthermore, SIG Group’s guidance for 2025 remains supportive, with anticipated top-line growth of 3-5% and an adjusted EBITDA margin target range that is higher than the previous year. The company’s ability to manage production bottlenecks and achieve revenue growth in the second half of 2024, particularly in its bag-in-box and spouted pouch segments, also contributed to the positive outlook. Additionally, the reduction in net debt and the proposed dividend increase reflect a solid financial position, further justifying the Buy rating.
Kjellberg covers the Consumer Cyclical sector, focusing on stocks such as International Paper Co, Avery Dennison, and Graphic Packaging. According to TipRanks, Kjellberg has an average return of 9.0% and a 57.97% success rate on recommended stocks.