Deutsche Bank lifts Cancom SE price target to EUR37.00

Published 14/05/2025, 08:36
Deutsche Bank lifts Cancom SE price target to EUR37.00

On Wednesday, Deutsche Bank (ETR:DBKGn) analyst Lars Vom-Cleff updated the financial outlook for Cancom SE (F:COKG) (COK:GR), raising the price target from EUR34.00 to EUR37.00 while maintaining a Buy rating on the stock. The adjustment follows Cancom’s latest earnings report, which showed a year-over-year revenue decrease of 6% and a significant 31% drop in EBITDA, resulting in a margin of 5.1%, down 184 basis points from the previous year.

Cancom’s performance was notably affected by cautious investment from small and medium-sized enterprises (SMEs) and the public sector. Despite these challenges, the company’s international business showed strong growth, contrasting with the continued struggles of its German operations.

Looking ahead, Cancom has provided guidance for the fiscal year 2025, projecting revenues between EUR 1,700 million and EUR 1,850 million, which represents a 2% increase at the midpoint compared to the previous year. The company also anticipates EBITDA to range from EUR 115 million to EUR 130 million, an 8% rise at the midpoint, and expects EBITA to be in the range of EUR 61 million to EUR 76 million, a 7% increase at the midpoint.

The analyst’s expectations are slightly more optimistic, with Deutsche Bank estimating a 3% year-over-year increase in revenue to EUR 1,788 million, and a 10% rise in both EBITDA and EBITA to EUR 125 million and EUR 65 million, respectively. It is important to note that Cancom’s full-year guidance is heavily reliant on performance in the latter part of the year, with the first quarter’s EBITDA contributing only 10% to the company’s mid-point forecast for fiscal year 2025.

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