AT&T, Texas Instruments and Enphase Energy fall premarket; Hasbro rises
On Thursday, Citi analysts revised their price target for Kone OYJ (KNEBV:FH) (OTC:KNYJY), adjusting it down to €58.00 from the previous €59.00, while continuing to endorse the stock with a Buy rating. The adjustment comes amid a challenging macroeconomic landscape, which has prompted a reassessment of the company’s earnings projections for the coming years.
Kone, a company specializing in the elevator and escalator industry, has been recognized for its robust performance year-to-date, even as markets faced turbulence due to trade war-induced sell-offs. Analysts at Citi highlight Kone’s defensive strengths, which they believe will support the company’s continued outperformance during uncertain economic times.
The firm’s financial resilience is attributed to its business model, with approximately 90% of its profits stemming from its services and modernization segment. This segment is considered to provide a stable earnings base. Additionally, outside of China, Kone is expected to exert pricing power to offset tariff-related cost increases. The company’s lead times in new building solutions (NBS) sales are also seen as a buffer that could protect its financial outlook for 2025.
However, due to the tougher macroeconomic conditions, Citi has revised its earnings per share (EPS) estimates for Kone, reducing them by 4% for 2025 and 7% for 2026. This revision underpins the decision to lower the price target to €58.00. Despite these adjustments, Citi’s analysts reaffirm their positive stance on Kone’s stock, maintaining a Buy rating and expressing confidence in the company’s ability to navigate through the economic headwinds.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.