Burckhardt: Valuation implies gradual margin expansion, UBS ups

Burckhardt Compression Holding AG

21/04/2020 12:46

** UBS upgrades Swiss manufacturer of reciprocating
compressors Burckhardt Compression Holding  BCHN.S  to "neutral"
from "sell"
    ** "We expect Burckhardt to remain on track despite current
environment," the broker says
    ** UBS says it believes the company is well-positioned to
weather the current backdrop in 2020 and continue to deliver on
EBIT margin expansion
    ** The broker adds it finds 2020-2022 EBIT margin
expectations to be achievable
    ** UBS says the previous "sell" rating was based on elevated
margin expectations priced in 
    ** It adds it now continues to expect a gradual expansion
towards the company's 2022 group EBIT margin target of 10-15%
also benefiting from a normalization in pricing and raw material
prices
    ** UBS says the current valuation reflects mid-single digit
sales growth with measured margin expansion in line with the
broker's figures



 ((paulina.cwikowska@tr.com))