US stock futures dip as Trump’s firing of Cook sparks Fed independence fears
Investing.com -- UBS has initiated coverage on French recreational boatmaker Beneteau SA (EPA:CHBE) with a Neutral rating and a price target of €9.
While the stock is trading at €8.22, UBS sees limited near-term upside as it expects headwinds to persist and cites a lack of clear catalysts for a turnaround.
The bank points to ongoing destocking at dealers and weak demand, which are expected to weigh on performance through full-year 2025 (FY25).
Organic sales fell 44% year-on-year in the first quarter, and UBS forecasts full-year revenues of around €880 million, slightly below the company’s €0.9–1.0 billion guidance range.
The EBIT margin is projected to drop to 2.8%, down from 7.3% last year.
“Given the point in the cycle, the low visibility in demand recovery, the uncertainty brought by the U.S. tariffs, and the lack of clear catalyst in the short term, we rate the shares Neutral,” analysts led by Louise Wiseur said.
However, they note that Beneteau is highly cyclical and advises investors to “have the company on their radar over the next few quarters for when demand starts to improve.”
A potential recovery is seen starting in FY26, supported by the easing of destocking effects and the launch of 66 new boat models between 2025 and 2027.
UBS forecasts double-digit organic growth next year, though it views the company’s FY28 sales target of €1.5 billion as “ambitious,” projecting instead €1.16 billion.
“Beneteau is a net cash business. We expect the firepower for M&A/shareholder returns to be limited as the company is likely to retain a net cash position with a buffer (given the cyclicality in the business),” the analysts added.
The margin outlook also remains cautious. While Beneteau aims to achieve a 10% adjusted EBIT margin by FY28, UBS forecasts just 7.5%, citing historical volatility and only two instances of margins exceeding 10% over the past two decades.
Valuation-wise, the €9 price target is based on a blend of 6.0x EV/EBIT 2026E and a discounted cash flow model.
The analysts conclude that the current valuation “fairly reflects the ongoing challenges” but note that a “blue sky” scenario—assuming stronger demand and faster margin recovery—could imply a share price as high as €13.