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Investing.com - Kepler Cheuvreux downgraded Geberit AG (SIX:GEBN) (OTC:GBERY) from Buy to Hold and lowered its price target to CHF635.00 from CHF650.00 on Thursday. The stock has shown remarkable strength this year, with a 37.6% year-to-date return according to InvestingPro data.
The Swiss sanitary products manufacturer has been removed from Kepler Cheuvreux’s Swiss Top Picks List following the downgrade.
The research firm cited the stock’s "good run and significant outperformance versus key benchmarks" since its previous upgrade on November 29, 2024, as the primary reason for the rating change.
Kepler Cheuvreux believes that its "moderated recovery scenario for Geberit’s organic top-line growth and the resulting margin trajectory is now close to being priced in."
The downgrade reflects a valuation-based decision rather than a fundamental change in the company’s business outlook, according to the research note.
In other recent news, Geberit reported a miss in its second-quarter sales and earnings expectations. The company experienced organic sales growth of 2.5%, which was about 110 basis points below consensus estimates. Total (EPA:TTEF) sales fell short of analyst expectations by approximately 2%. This shortfall was largely due to weaker organic growth and unexpected foreign exchange headwinds. Despite these setbacks, Geberit maintained a stable outlook for its margins for the full year 2025. Analysts had anticipated stronger performance, but the company’s challenges in foreign exchange contributed to the miss. Investors will be watching closely to see how Geberit navigates these issues moving forward.
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