German construction sector still in recession, civil engineering only bright spot
On Wednesday, Jefferies analysts upgraded Kardex AG (KARN:SW) stock from Hold to Buy, setting a new price target of CHF300.00, up from CHF270.00. The decision follows a recent share price correction and signals a more sustainable recovery in demand for Kardex’s Remstar and Mlog solutions.
The analysts noted that after a significant investment cycle between 2020 and 2022, Kardex is beginning to see a stabilization of orders at system integrators, which is viewed positively. Despite challenges such as US tariff policies affecting industrial confidence, the firm sees potential for further cyclical recovery driven by factors like personnel shortages and rising costs.
Kardex’s recently upgraded medium-term guidance of €1.5 billion in revenue by 2029/31 also supports this optimistic outlook. The guidance suggests a compound annual growth rate of 10-14%, up from a previous estimate of 5-7%, mainly due to the geographical expansion of AutoStore and Mlog’s solutions.
While Jefferies cut its estimates for 2025 and 2026 by 8% and 2%, respectively, due to announced operational expenses in sales and marketing as well as research and development, the analysts raised their order intake estimates for 2025. This adjustment is expected to drive upgrades from 2027 onwards.
The upgrade reflects Jefferies’ constructive view on Kardex as the company navigates its recovery phase and capitalizes on strategic growth opportunities.
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