Deutsche Bank cuts Duerr to 'hold' on Homag 'headaches'

Duerr AG

23/10/2023 09:19

** Deutsche Bank cuts Duerr  DUEG.DE  to "hold" from "buy"
after the German machinery maker last week cut its 2024
profitability target
    ** The warning was due to a strong decline in orders at
Duerr's woodworking division Homag
    ** "Homag again causing headaches," DB says, noting the
unit's business is not expected to recover before 2025
    ** Duerr's lowered 2024 adj. EBIT margin target of 4.5%-6%
implies, at midpoint, about 25% negative earnings adjustments in
consensus, the brokerage says
    ** "While we appreciate Duerr's long-term strategy of
focusing on more profitable, stable and structural trends in the
CapGoods sector, we note that the company has again postponed
its mid-term profitability targets" -DB
    ** Shares in Duerr fall nearly 4%
    ** Out of 16 analysts that cover Duerr, nine rate the stock
"strong buy"/"buy",​ six "hold" and one "sell" - LSEG data

 (Reporting Mateusz Dobrzyniewski)
 ((Mateusz.dobrzyniewski@thomsonreuters.com))