GEA Group: UBS raises target price

(CercleFinance.com) - UBS confirms its buy recommendation on the share of the systems supplier for the food, beverage and pharmaceutical sectors, raising its target price for them to E51 (from E47).
This new target represents 12% upside potential.

Investor day targets (at the lower end of the range) and a certain improvement in orders in the short term justify an increase in the target price to E51, which leaves additional room for growth if things improve, UBS says.

At its CMD, the group announced that it expects average organic sales growth of over 5% p.a. through to 2030.

It also targets EBITDA growth of 17% to 19% to 2030 (vs. 14.4% in 2023), with return on capital employed (ROCE) expected to reach over 45% (vs. 32.7% in 2023).


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