Street Calls of the Week
Investing.com - Deutsche Bank initiated coverage on TKMS AG (TKMS:GR) with a Hold rating and a price target of EUR75.00 on Wednesday.
The German naval defense company, which recently went public, is positioned in a strong growth market for conventional submarines, according to Deutsche Bank’s research note.
Deutsche Bank highlighted TKMS’s impressive cash generation capabilities and potential for profitability improvements driven by structural margin enhancements, though it believes the current valuation already reflects these positive factors.
The research firm noted that TKMS’s order backlog has already increased 60% from FY24 to EUR18.6 billion, representing approximately nine years of revenue and providing strong growth visibility, particularly in its submarine business.
Deutsche Bank also pointed out that TKMS is well-positioned to secure several major contract wins in the next one to two years, which could potentially double its current backlog.
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