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Investing.com - Deutsche Bank (ETR:DBKGn) lowered its price target on Technoprobe SpA (BIT:TPRO) to EUR8.50 from EUR9.00 on Friday, while maintaining a Buy rating on the stock.
The price target reduction follows Technoprobe’s softer-than-expected Q3 outlook, with projected sales of EUR137.4 million, representing a 14% decrease compared to consensus estimates, and EBITDA margins of 28.2%, which is 580 basis points below consensus.
Deutsche Bank attributed the weaker outlook primarily to foreign exchange headwinds, as the majority of Technoprobe’s sales are in USD, along with pronounced cyclicality in the DIS segment, which is expected to decline from over EUR50 million in Q2 to approximately EUR35 million in Q3.
Despite the near-term challenges, Technoprobe management maintains that EUR620 million in sales for fiscal year 2025 remains achievable, despite an anticipated FX headwind of approximately EUR30 million, implying a strong rebound in Q4 to EUR158 million, representing a 15% quarter-over-quarter increase.
Deutsche Bank noted that Technoprobe’s Q4 estimate assumes further deterioration in foreign exchange rates rather than using current spot rates, suggesting management is taking a more cautious approach to forward guidance amid broader macroeconomic volatility.
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