Kepler cuts Zumtobel stock rating to hold, target to EUR5.50

Published 19/02/2025, 12:10
Kepler cuts Zumtobel stock rating to hold, target to EUR5.50

On Wednesday, Kepler Cheuvreux analysts revised their stance on Zumtobel Group AG (T9Z:GR), downgrading the stock from "Buy" to "Hold" and reducing the price target to €5.50 from the previous €7.00. The adjustment reflects a new evaluation of the company’s prospects following a transfer of coverage within the firm.

The analysts acknowledged the commendable restructuring efforts by the management of Zumtobel but expressed concerns over ongoing pricing pressures. They also indicated skepticism regarding the company’s potential for volume growth in the short term. This outlook is partly due to expectations of a subdued European construction sector, which could impact Zumtobel’s performance.

The price target revision from €7.00 to €5.50 comes as Kepler Cheuvreux updates its model for Zumtobel, factoring in the latest market conditions and internal assessments of the company’s future. The analysts’ commentary highlighted the challenges faced by the company, including the competitive environment which could hinder the ability to increase sales volumes.

Zumtobel, a company specializing in lighting solutions, has been navigating through a period of strategic changes aimed at improving efficiency and profitability. Despite these efforts and the progress made in restructuring, the analysts at Kepler Cheuvreux remain cautious about the near-term growth prospects for the firm.

The announcement from Kepler Cheuvreux is expected to be of interest to investors and market watchers, as it provides insights into Zumtobel’s current positioning within the market and the factors influencing its stock rating and price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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