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On Friday, Kepler Cheuvreux analyst Torsten Sauter revised the rating and price target for Bucher Industries AG (BUCN:SW) (OTC: BCHHF). The firm’s stock was upgraded from Hold to Buy, with a new price target set at CHF425.00, up from the previous CHF350.00. Sauter’s decision to adjust the rating and price target follows a comprehensive review of the company’s preliminary financial results for fiscal year 2024 and its guidance for fiscal year 2025.
The analyst noted that the updated figures and projections from Bucher Industries have mitigated some of the risks previously associated with the stock. A key factor contributing to the upgrade is the Q4 order momentum observed in Bucher’s main business unit, Kuhn, which is showing strong signs of improvement. According to Sauter, dealer inventories have been depleted, and Kuhn’s cycle appears to have reached its lowest point, signaling a potential turnaround.
Sauter also mentioned that agricultural capital expenditure indicators, such as the CEMA index, are suggesting a robust recovery in the agricultural equipment investment cycle. This positive trend is expected to benefit Bucher Industries, as Kuhn specializes in agricultural machinery and equipment.
In addition to the positive developments at Kuhn, there are indications that Bucher is experiencing early growth, or "green shoots," in its other business units. Cost-cutting measures implemented by the company are also seen as a factor that will help stabilize earnings throughout the business cycle.
As a result of these assessments and the encouraging signs from Bucher Industries, Kepler Cheuvreux has increased its estimates for the company’s future performance, alongside the raised price target. The analyst’s commentary provides a more optimistic outlook for Bucher Industries as it moves forward into the next fiscal year.
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