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Investing.com - Jefferies downgraded Vossloh (ETR:VOSG) AG (ETR:VOS) (OTC:VOSSF) from Buy to Hold on Thursday, while simultaneously raising its price target to EUR95.00 from EUR85.00.
The German rail infrastructure company’s shares have surged approximately 60% year-to-date, prompting Jefferies to reassess the stock’s potential for further gains at current valuation levels.
Jefferies cited concerns about Vossloh’s valuation, noting that both its multiples and premium compared to peers appear stretched against what it describes as an "increasingly challenging risk/return profile."
The research firm attributed a significant portion of Vossloh’s recent stock performance to the announcement of a German infrastructure package, but expressed caution about whether the company’s fundamentals would follow suit to justify the current valuation.
Additional factors influencing the downgrade include the delayed closing of the Sateba acquisition and what Jefferies characterized as a "lack of clear catalysts" that could drive the stock price higher from current levels.
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