Deutsche Bank reiterates Sell rating on Alfen stock amid lowered targets

Published 22/08/2025, 09:46
Deutsche Bank reiterates Sell rating on Alfen stock amid lowered targets

Investing.com - Deutsche Bank (ETR:DBKGn) has reiterated its Sell rating and EUR8.00 price target on Alfen (AS:ALFEN) (OTC:ALFNF) following the company’s reduction of its mid-term targets in its Q2 release.

The downward revision comes as demand for Alfen’s charging solutions and smart grid business fails to reach previously projected volumes, according to Deutsche Bank’s analysis.

Pricing pressures in the charging and storage segments are also negatively impacting revenue growth, contributing to the company’s expectation of limited top-line growth and margins remaining at similar levels in 2026 as they are this year.

Alfen has withdrawn its 2027 targets due to limited visibility, while its current restructuring program is yielding cost reductions of approximately 10% year-over-year.

The company’s management has indicated that returning to double-digit margins will require substantial top-line growth to leverage the cost base effectively, despite acknowledging the long-term potential of the energy transition.

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