Knorr-Bremse stock rating cut to neutral by JPMorgan on valuation

Published 27/06/2025, 03:30
Knorr-Bremse stock rating cut to neutral by JPMorgan on valuation

Investing.com - JPMorgan downgraded Knorr-Bremse AG (ETR:KBX) to neutral from overweight on Wednesday, maintaining a price target of EUR93.00, citing limited upside after the stock’s strong year-to-date performance.

The German braking systems manufacturer has seen its shares rise 21% year-to-date, outperforming both the broader sector and its key European customers in rail and truck markets, according to JPMorgan’s analysis.

The investment bank expects downside to consensus estimates in the second quarter, driven by weakness in the North American truck market and headwinds from exchange rates, with orders, revenue and adjusted EBIT estimates 5%, 3%, and 3% below consensus, respectively.

JPMorgan has lowered its 2025/26 operating EBIT estimates for Knorr-Bremse by 3% and 5%, reflecting updated exchange rates and assumptions about the North American truck market.

The bank also noted it expects limited benefits in the near term from German stimulus measures and sees a lack of catalysts in the second half of the year for the stock to continue outperforming.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.