Deutsche Bank cuts Azelis stock target to EUR14.80, maintains hold

Published 29/04/2025, 11:32
Deutsche Bank cuts Azelis stock target to EUR14.80, maintains hold

On Tuesday, Deutsche Bank (ETR:DBKGn) analyst Dominic Edridge revised the price target for Azelis Group NV (AZE:BB) to €14.80, down from the previous €20.40, while keeping a Hold rating on the stock. The adjustment follows the company’s first-quarter results, which led to a downward revision of earnings forecasts and a recalibration of the target multiple based on a sector-wide de-rating and Azelis’ specific financial position.

Edridge’s report, which followed the quarterly earnings release, highlighted a 9% reduction in the 2025 EBITA forecast to €474 million, citing a weaker order book and heightened risks. This figure stands 5% below the consensus before the results were announced. The analyst also noted a decrease of approximately 8% in the underlying EBITA projections for 2026-2027, as the downgrades are expected to impact future years as well.

For the second quarter of 2025, Deutsche Bank forecasts an EBITA of €121 million for Azelis, which is 10% below the pre-results consensus. The reduction in the target price to €14.80 from the previous €20.40 reflects lower earnings per share (EPS) forecasts and a lower target multiple. The target multiple has been adjusted in light of a de-rating among Azelis’ peers.

Edridge also mentioned that Azelis is being valued at a discount compared to its main competitor due to its shorter track record and higher financial gearing. The valuation for Azelis now stands at a 2025E Price-to-Earnings (P/E) ratio of 13.1x, which has been decreased from the prior ratio of 16x. The stock is currently trading at an 11.9x 2025E P/E and a 9.5x 2025 EV/EBITDA, which Deutsche Bank views as fair given the circumstances.

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