TSX runs higher on rate cut expectations
Investing.com - Jefferies upgraded Basler AG (ETR:BSL) from Hold to Buy on Thursday, more than doubling its price target to EUR21.00 from EUR9.00.
The upgrade comes as Jefferies recognizes signs of order recovery in the first half of the year and anticipates further growth potential for the machine vision company following its recent restructuring efforts.
Jefferies expects Basler to benefit from significant operating leverage after last year’s cost restructuring program, which is delivering results faster than initially anticipated. The firm has doubled its profit margin forecast for this year based on these improvements.
The research firm sees substantial recovery potential in consumer electronics and industrial automation verticals. Jefferies also views recent US-China trade tensions as potentially beneficial for Basler, positioning it as "the only major Western player in the domestic market offering a return to profitable growth."
Despite market concerns about Chinese growth prospects and increasing protectionism, Jefferies believes Basler’s leaner operational structure positions the company well for continued share price appreciation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.