Kepler Cheuvreux upgrades Fuchs stock rating to Hold after profit warning

Published 17/07/2025, 09:04
Kepler Cheuvreux upgrades Fuchs stock rating to Hold after profit warning

Investing.com - Kepler Cheuvreux upgraded Fuchs SE (ETR:FPE3) stock rating from Reduce to Hold on Wednesday, while lowering its price target to EUR42.00 from EUR47.00 following the company’s recent profit warning.

The German lubricant manufacturer issued a profit warning ahead of its second-quarter results, with quarterly EBIT reportedly 10% below market expectations. The company also revised its full-year 2025 EBIT guidance, which now sits approximately 5% below consensus estimates.

Kepler Cheuvreux expressed skepticism about the new guidance, which assumes business normalization in the second half of 2025 despite challenging macroeconomic conditions. The research firm consequently reduced its earnings per share estimates for Fuchs by 10-11% for the years 2025 through 2027.

The downward revision in price target reflects these adjusted earnings expectations, with the new EUR42.00 target representing a reduction of approximately 10.6% from the previous EUR47.00 target.

Despite these concerns, Kepler Cheuvreux noted that Fuchs shares experienced a significant price drop on Tuesday, July 16, creating some potential upside that justified the upgrade from Reduce to Hold.

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