Street Calls of the Week
Investing.com - Kepler Cheuvreux upgraded Kardex AG (SWX:KARN) from Hold to Buy on Monday, while significantly raising its price target to CHF315.00 from CHF215.00.
The Swiss investment firm cited increased confidence in Kardex’s growth trajectory and lower execution risk as key factors behind the upgrade, despite maintaining its existing earnings estimates.
The upgrade follows Kardex management’s March announcement of ambitious mid-term growth targets that aim to double the group’s size organically by the end of the decade, though Kepler Cheuvreux’s forecasts remain below these targets.
Kepler Cheuvreux noted that while it initially received limited supporting details for these growth projections, the company has since provided "sufficient reason to have far greater confidence in such growth and margin targets."
The firm suggested that an expected soft first half of 2025 could present an entry opportunity for investors seeking exposure to what it described as a "fast-growing compounder."
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