RBC cuts Carl Zeiss rating on weak demand concerns

Carl Zeiss Meditec AG

04/11/2024 09:07

** RBC cuts Carl Zeiss  AFXG.DE  to "sector perform" from
"outperform", citing uncertainty around demand in its end
markets; brokerage to switch to a shorter-term focus
    ** It views the German optical systems maker as a market
leader but co also affected by weak demand that has defied
prediction
    ** "We expect this demand weakness to continue into 2025,
and therefore bring down expectations for revenue growth with a
commensurate impact on EBIT, leading to a 21.5% impact to EPS" -
RBC
    ** RBC sees the possibility of consensus coming down when FY
results are published on Dec. 11
    ** The 2025 consensus implies fairly optimistic organic
revenue growth scenario, which brokerage struggles to justify
based on information currently available
    ** AFXG down 42% YTD 
    
  

 (Reporting by Paolo Laudani)
 ((Paolo.laudani@thomsonreuters.com))