Street Calls of the Week
Investing.com - Deutsche Bank initiated coverage on dormakaba Holding AG (SWX:DOKA) with a Buy rating and a price target of CHF922.00 on Saturday.
The bank views dormakaba as a compelling investment opportunity, suggesting the market currently undervalues the company’s successful strategic execution, robust financial health, and favorable positioning within the access solutions market.
Deutsche Bank forecasts FY24/25-FY28/29E revenue and EBITDA compound annual growth rates of 4% and 10% respectively, slightly more optimistic than the consensus. The bank notes dormakaba’s position as the third-largest player globally in its industry.
The company benefits from strong brand reputation, global presence across 130 countries, and an extensive service network providing recurring, low-volatility revenue streams, according to Deutsche Bank’s analysis.
Deutsche Bank also highlighted dormakaba’s medium-term strategy to expand significantly in the high-margin North American market to become "a strong #3," along with the company’s recently revised dividend policy that includes a commitment to annual dividend increases.
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