Jefferies upgrades Interroll stock to Buy on bottoming downturn

Published 05/08/2025, 08:50
Jefferies upgrades Interroll stock to Buy on bottoming downturn

Investing.com - Jefferies upgraded Interroll Holding AG (SIX:INRN) from Hold to Buy and raised its price target to CHF2,600.00 from CHF2,000.00, citing signs that the company’s downturn has likely bottomed out.

The upgrade follows Interroll’s first-half 2025 results and management commentary indicating encouraging order trends that are increasing in local terms. The company has secured new big-ticket wins and is seeing smaller e-commerce orders starting to come through despite macroeconomic headwinds.

Interroll reported that logistics clients are reactivating expansion plans, with the Americas returning to growth in orders thanks to e-commerce fulfillment projects. Management expects continued momentum in product business and potential acceleration in project orders in the fourth quarter of 2025 or first quarter of 2026.

The company maintains a solid balance sheet with expected net cash of approximately €228 million for 2025, limited need for additional capital expenditure, and strong cash generation at around 100% of net income. Secular growth drivers including labor shortages and nearshoring trends further strengthen Interroll’s position.

Jefferies’ new price target of CHF2,600 implies a 23x EV/EBIT multiple for 2026, in line with the company’s average multiple over the cycle, with analysts anticipating a rerating followed by a potential upgrade cycle from 2027 depending on the recovery curve.

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