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Kepler Cheuvreux raised its price target on Burckhardt Compression Holding AG (SIX:BCHN:SW) to CHF755.00 from CHF750.00 on Wednesday, while maintaining a Buy rating on the Swiss industrial equipment manufacturer.
The research firm’s adjustment comes as Burckhardt Compression targets revenues of CHF1.2 billion and a 12-15% EBIT margin by fiscal year 2027/28 in its Mid-Range Plan, despite emerging challenges in key markets.
Kepler Cheuvreux noted several headwinds facing the company, including delays in hydrogen projects, peak shipping-related orders, potential softening in the Chinese market, and the impact of U.S. tariffs requiring price increases in a difficult market environment.
The strong Swiss franc may also pressure margins, while service monetization remains challenging as the company typically needs time to convert its growing installed base into recurring, margin-accretive business, according to the research firm.
Burckhardt Compression’s new fiscal year 2025/26 guidance assumes flat sales of approximately CHF1.1 billion and margins around 12.9%, reflecting these market challenges rather than continued growth.
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