HSBC sees no 'Goldilocks' scenario for DACH industrials

Bilfinger SE

06/09/2023 12:37

** HSBC sees no soft landing, or the so-called best-case
"Goldilocks" scenario for Austrian, German, and Swiss (DACH)
industrial companies, despite markets betting on such an outcome
    ** "Current macro conditions hint to a reverse 'Goldilocks'
scenario, in our view, while a recession still is not entirely
off the table, especially if deflationary trends pick up speed
and the job market starts to crack," the broker says
    ** It downgrades Germany's Jungheinrich  JUNG_p.DE  to
"hold" from "buy" on order volume uncertainty and Hochtief
 HOTG.DE  to "hold" from "buy" saying the stock is fully
priced-in 
    ** The broker upgrades Krones  KRNG.DE  to "buy" from "hold"
on undemanding valuation
    ** It also highlights resiliency in Andritz  ANDR.VI ,
Bilfinger  GBFG.DE , GEA  G1AG.DE  and Rheinmetall  RHMG.DE 
    ** "However, early calls for a recession have been
consistently proven wrong for the past year, and timing remains
difficult," HSBC adds

 (Reporting by Andrey Sychev)
 ((Andrey.Sychev2@thomsonreuters.com; Twitter: https://twitter.com/sich_11))