Friedrich Vorwerk stock supported by record revenues and mid-teens margin outlook

Published 17/01/2025, 10:52
Friedrich Vorwerk stock supported by record revenues and mid-teens margin outlook

On Friday, Berenberg analysts increased their price target on Friedrich Vorwerk Group SE (ETR:VH2:GR) stock to EUR39.00, up from the previous EUR34.00, while reiterating a Buy rating. The adjustment comes in response to the company's preliminary Q4 results, which displayed a sustained improvement in profitability.

Friedrich Vorwerk, a provider of technical solutions for energy and infrastructure projects, reported record revenues and EBITDA for the quarter, with margins around 19%, surpassing market expectations. This performance marks a significant achievement for the company, highlighting a robust recovery phase.

The analysts at Berenberg have expressed optimism regarding the company's future, expecting it to maintain EBITDA margins in the mid-teens over the medium term. This projection is supported by strong demand in the end markets Friedrich Vorwerk serves, which suggests a stable outlook for the company's financial health.

The company's potential to secure additional large orders in the fiscal year 2025 was also noted, indicating further opportunities for growth. This potential for new business, combined with the company's recent financial successes, underpins the analyst's positive rating and the raised price target.

Investors and market watchers will likely keep a close eye on Friedrich Vorwerk's performance in the coming months, as it strives to capitalize on the favorable conditions and secure its position in the market. The company's ability to maintain its momentum will be key to meeting the expectations reflected in the revised price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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