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On Friday, BofA Securities analysts upgraded Jungheinrich AG (ETR:JUNG_p) (JUN3:GR) stock from Neutral to Buy, significantly increasing the price target to €40.00, up from the previous €26.00. The upgrade is based on expectations of similar midterm growth drivers that are seen for the company’s peer, KION. Analysts at BofA Securities believe that Jungheinrich’s stock will continue to benefit from a positive topline outlook and profitability gains due to operating leverage, which could lead to further rerating.
Jungheinrich’s stock has already shown a strong performance year-to-date, outperforming the SXNP index by approximately 16%. Despite this growth, BofA Securities suggests that there is room for additional appreciation. The analysts have valued the stock in line with its historical average of 9.7x EV/EBITA, based on projections for 2026 and discounted back one year.
While BofA Securities’ estimates for Jungheinrich’s 2025 adjusted EBITA are roughly 8% below the consensus, they anticipate that investors will overlook short-term challenges in favor of the company’s mid-term potential. Currently, the stock is trading at around 7 to 8 times its 2026 EV/adjusted EBITA, which represents a discount of about 20% compared to its historical averages.
The positive outlook for Jungheinrich is partly attributed to the company’s ability to capitalize on operating leverage, which is expected to enhance profitability as revenue grows. This financial mechanism is seen as a key factor in the potential rerating of the stock by the market.
In summary, BofA Securities has provided a bullish stance on Jungheinrich, underlining the company’s promising growth prospects and the expectation of a sustained upward trajectory in its stock value. The new price target of €40.00 reflects a significant increase from the previous target and underscores the firm’s confidence in Jungheinrich’s performance potential.
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