Berenberg turns more bullish on Duerr's woodworking biz
10/08/2021 10:29
** Berenberg ups Germany's Duerr AG DUEG.DE to "buy" from
"hold" citing positive outlook for its woodworking division and
resiliency of its core automotive business
** "Dürr's woodworking division continues to reveal
significant positive surprises," Berenberg says as it raised its
forecast for the division's adjusted EBIT by 45-50% for 2021 and
2023, and by 30% for 2022
** The brokerage says the division is entering a phase of
sustained top-line growth as woodworking machinery markets
recover from the crisis and, on top of this, wood is emerging as
an important construction material increasingly used in houses
** The brokerage adds the company's core activities show
good results supported by the combination of a recovery in order
intake and self-help measures
** It also expects core business margin recovery to be
faster than it previously anticipated citing "encouraging"
margin trends
** The brokerage notes the stock's valuation looks
"relatively attractive", even despite recent share price rally
** Out of 17 analysts that cover Duerr AG, 11 rate the stock
"strong buy" or "buy", five rate it "hold" and one rates the
stock "sell"
((Elizaveta.Zhuravleva@thomsonreuters.com))