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On Monday, Deutsche Bank (ETR:DBKGn)’s research division updated its financial outlook on Bechtle AG (BC8:GR) (OTC:BECTY), increasing the price target from EUR48.00 to EUR49.00. The firm reaffirmed its Buy rating on the stock, following the release of the company’s first-quarter financial results for 2025.
The results revealed that earnings before taxes (EBT) dropped by 33% year-over-year, primarily due to a rise in personnel expenses by 6%, reduced bonus payments from manufacturing partners, and a base effect from marketing allowances in the first quarter of the previous year. Revenue saw a 3% decline year-over-year, with an organic decrease of 5%. However, the business volume showed a slight increase of 0.8% year-over-year, with an organic contraction of 0.9%.
Despite the overall downturn, Bechtle experienced growth in several European markets outside its core regions of Germany and France. Notably, Belgium, Italy, the Netherlands, and the UK showed positive developments for the company. The analyst pointed out that the operating cash flow was in the negative at EUR -22 million, which was not uncommon for the first quarter.
The order intake for Bechtle improved by 3% year-over-year, and the order backlog also saw a 2% increase from the previous year. These indicators suggest a measure of resilience in the company’s operations, despite the challenges faced in its primary markets and the broader industry landscape.
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