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Investing.com - Deutsche Bank has raised its price target on Schaeffler AG (ETR:SHA) (OTC:SFFLY) to EUR4.70 from EUR4.00 while maintaining a Hold rating following the company’s Capital Markets Day.
The German automotive and industrial supplier presented mid-term targets that Deutsche Bank considers "achievable," with the E-Mobility division identified as the primary driver for future earnings improvements despite currently generating significant operating losses.
Deutsche Bank noted that growth in the E-Mobility segment is expected to more than offset ramp-downs in non-core business areas, with management indicating that 80% of the target order coverage has already been secured.
The bank emphasized that achieving these targets will depend on strong execution of cost measures and successful fulfillment of the existing order backlog, factors that prompted modest forecast cuts for 2026/2027 despite the higher price target.
Deutsche Bank remains neutral on Schaeffler shares, suggesting that upside potential is "fully priced" and that market excitement around emerging businesses such as humanoid robots limits further near-term share price appreciation.
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