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On Friday, Kepler Cheuvreux adjusted its stance on LEM Holding SA (LEHN:SW), downgrading the stock from Buy to Hold and reducing the price target to CHF 850.00 from CHF 1,050.00. This decision comes ahead of the company’s financial year 2025 results announcement, scheduled for May 27.
LEM Holding, which has experienced weakness across all end-markets, remains optimistic about a potential recovery towards the year’s end. Management expects the EBIT margin to reach the high-single-digit range, excluding one-off costs. This expectation is partly due to the early positive impacts of the company’s Fit for Growth program.
However, despite a gradual recovery in the book-to-bill ratio, the low sales volume indicates that order levels remain modest in absolute terms. As a result, the management is tempering expectations for the upcoming year, projecting a revenue performance similar to the previous year.
The slower-than-anticipated recovery has led to a reassessment of LEM Holding’s valuation by Kepler Cheuvreux. The research firm’s analysts have thus revised their price target downward by CHF 200.00, reflecting the delayed recovery assumptions and the impact on the company’s future financial performance.
Investors and market watchers are now looking towards the May 27 release of the company’s full-year results, which will provide further insights into LEM Holding’s financial health and the effectiveness of its strategic initiatives amidst challenging market conditions.
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