Berenberg starts Dormakaba with 'buy' on strategy progress

Dormakaba Holding AG

27/09/2024 09:01

** Berenberg starts Swiss security device maker Dormakaba
 DOKA.S  with "buy" and substantial 30% upside to PT of CHF 798;
says co is "well on track" to implement its Shape4Growth (S4G)
strategy
    ** S4G, which aims to reduce complexity in operations and
increase cost efficiency, should drive operating EBITDA margins
to 16-18% by 2026/27, compared to the 14.6% co has achieved on
average since 2015 - brokerage 
    ** Co's core exposure to commercial markets and resilient
renovation business makes it well positioned versus key peers,
Berenberg says
    ** Despite challenging macro backdrop, brokerage sees a 4.7%
average organic sales growth between 2024/25 and 2026/27
    ** Dormakaba offers high cash generation and desirable
shareholder returns, Berenberg notes
    ** As of last close, stock has gained 37.9% YTD 

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))