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Investing.com - Berenberg has lowered its price target on Deme Group NV (DEME:BB) to €180.00 from €190.00 while maintaining a Buy rating, following the company’s H1 results released on August 26.
The marine engineering firm reported H1 results that significantly exceeded both Berenberg’s and consensus expectations, according to the research note. However, Berenberg identified several non-recurring effects that impacted the financial performance, creating uncertainty about the underlying operational strength.
Berenberg considers the H1 margins "exceptionally high" and expects them to normalize at lower levels in future periods. The firm also noted sluggish Q2 order intake, with the order book declining 15% year-to-date when excluding the backlog from recently acquired Havfram.
Despite these concerns, Berenberg highlighted management’s confidence that the order book will return to growth in coming quarters, supported by what they described as a "promising tendering pipeline."
The research firm views Deme Group’s current valuation as attractive, noting the shares trade at 4x 2026E EV/EBITDA and 11x 2026E P/E, factors that contributed to maintaining the Buy rating despite the price target reduction.
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