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Investing.com -- Burckhardt Compression stock dropped 4% after analysts at Kepler downgraded the shares to Hold from Buy, citing concerns about market normalization and tariff impacts.
The Swiss industrial equipment manufacturer faces headwinds despite being on track to meet its fiscal year 2025/26 guidance, according to Kepler’s analysis. The research firm pointed to several challenges, including the European Union’s pledge to source more U.S. liquefied natural gas (LNG), which will take time to lift a market that is normalizing after several strong years.
Kepler highlighted that Burckhardt faces the steepest tariff burden within its peer group, with a 39% tariff on Swiss goods effective since August. These tariffs and related price increases could potentially dampen demand for the company’s products.
Additionally, softer energy prices may present another near-term challenge for Burckhardt, prompting Kepler to trim its order intake and new equipment outlook starting next year. While the company’s aftermarket business provides stability, analysts note it will require time to regain momentum.
The downgrade comes despite Kepler’s assessment that Burckhardt remains on track to achieve its fiscal year 2025/26 targets, suggesting the stock may need time to digest its recent price movements before potential further gains.
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