Baader upgrades Fielmann after 'turning point reached'

Fielmann AG

01/03/2023 10:32

** Baader Helvea raises Fielmann  FIEG.DE  from "add" to
"buy", says it still sees further potential in the company
despite recent negative FY results
    ** The broker notes that after dividend cut, the German
optics manufacturer now has "improved firepower" for its
expansion strategy
    ** 2022 results were impacted by a number of negative
factors as high marketing costs, unfavourable U.S. dollar
effect, and COVID, which are expected to ease throughout this
year - broker
    ** Thanks to a cost reduction program, the firm will be able
to increase its EBT margin to 10%, Baader Helvea analysts write
in a note
    ** Research firm sets its expectations slightly above
consensus, says "the market has not fully reflected Fielmann's
cost-cutting program in its projections, yet" 
    ** Fielmann's shares were up 4% at Frankfurt open, slowing
down growth to 3% at 0930 GMT

 (Reporting by Andrey Sychev)
 ((Andrey.Sychev2@thomsonreuters.com))