Trump to visit Fed on Thursday amid Powell feud, renovation probe
On Thursday, Berenberg analysts downgraded Azelis Group NV (AZE:BB) stock from Buy to Hold, adjusting the price target to €17.00 from €21.00. The decision follows concerns about the company’s leverage, estimated at around three times, and its private equity ownership. Weak first-quarter results and potential challenges with employee retention also contributed to the downgrade.
The analysts noted that their adjusted EBITA estimate for 2025 is now 5% below the Visible Alpha consensus, indicating a downside risk for earnings. These factors, according to Berenberg, limit the potential for any near-term expansion in the stock’s valuation multiple.
With the price target set at €17.00, based on a 16.6x fiscal year 2025 price-to-earnings multiple, Berenberg sees limited potential for Azelis Group’s share price to appreciate over the next 12 months. The new price target is approximately 15% above the current share price.
Despite these short-term concerns, Berenberg remains supportive of Azelis Group’s long-term equity story. However, the analysts believe that the immediate outlook does not support a higher rating, prompting the downgrade.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.