(News Bulletin 247) – Stifel remains long on the Geberit share with a target price of 555 CHF.
While Geberit achieved an EBITDA margin of 26.8% for FY22, slightly lower than expected, the -5%/-1% variance on absolute 4th quarter EBITDA was more than offset, estimates the analyst, ‘by extraordinary tax effects, improving net income by +5%/+25%’.
For Stifel, Geberit has defined two guiding principles for 2023: Strategic stability and operational flexibility.
“The main objective is once again to achieve good performances in all markets and, as in previous years, to win new market shares,” notes the analyst.
The consensus expects an organic growth rate of +1.5% for the 2023 financial year compared to Stifel’s estimate of +0.6%. “An EBITDA margin of 28.6% is expected,” continues the analyst for whom it is unlikely that the information published today will lead to significant changes in consensus expectations.
‘However, the slight deviation in EBITDA is probably not such as to support the Geberit share price’, concludes Stifel.
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