Aumann: Berenberg cuts to "hold" on revenue decline risk
18/07/2019 07:22
** Berenberg cuts German manufacturer of specialized
machines Aumann AAGG.DE to "hold" from "buy"
** In addition to Aumann's FY 2019 profit warning and weak
H1 order run-rate, Berenberg believes there is a material risk
of further revenue decline in 2020
** With little visibility on a near-term upturn, the company
expects the factors leading to the 2019 warning to continue
“beyond the current fiscal year”, says the brokerage
** The brokerage expects orders in the company's e-mobility
division, which serves the automotive, aerospace and other
transportation industries, to recover from 2020, but not enough
to offset the structural decline that has begun in the rest of
its business
** The brokerage cuts 2020/21 earnings estimates by close to
50%
((Oben.mumcuoglu@tr.com))