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Investing.com -- PVA TePla AG (ETR:TPEG), a company previously known for its niche focus on equipment manufacturing, has undergone a transformation in recent years, positioning itself as a key enabler in the next-generation semiconductor manufacturing space.
This shift has positioned the company in a more promising growth trajectory, although challenges in key areas, particularly metrology, have held back its full potential.
In a recent upgrade, analysts at Deutsche Bank (ETR:DBKGn) raised their recommendation on PVA TePla to “buy” from “hold,” reflecting confidence in the company’s future prospects.
The target price has also been adjusted, increasing to €26 from €14.50, a jump from the company’s last close price of €16.04.
This revised outlook comes amid expectations that the company is transitioning towards a period of more robust growth, driven primarily by its metrology segment.
The brokerage noted that while the company has seen solid performance in recent years, it has not yet reached its full potential.
This underperformance can be partly attributed to delays in momentum in key areas, such as metrology, which is expected to be a critical driver for the company moving forward.
According to analysts, the year 2025 will likely be a period of transition for PVA TePla, characterized by flat revenues and lower earnings.
This slower phase is seen as necessary for the company to digest past growth and establish a foundation for future expansion.
Despite the expected short-term challenges, analysts remain optimistic about PVA TePla’s long-term prospects.
The company is expected to see acceleration in growth within its metrology business, supported by recent investments that are anticipated to yield results beginning in 2026.