'Smooth driving on a rocky road': Deutsche Bank ups Fuchs to 'buy'

Fuchs Se

19/01/2022 09:30

** Deutsche Bank upgrades Fuchs  FPEG_p.DE  to "buy" from
"hold" and raises target price by 4.2% to EUR 50, saying the
German lubricant maker's 2021 guidance is not in danger as the
group's business model helps it weather market volatility
    ** "We are confident that Fuch's full-year guidance is not
endangered and that margins, in line with absolute revenue and
EBIT, should rise again this year," the broker says
    ** DB says the company's global presence and market
proximity helps its response times, flexibility and portfolio
diversification, lowering business volatility
    ** It also expects both Fuchs' major client segments -
automotive and industrial companies - to benefit from improving
business conditions
    ** Megatrends such as lowering of CO2 emissions should also
increase demand for "higher-value" grease and lubricant
products, which are Fuchs' major business, the brokerage adds
    ** It forecasts a 17% increase in 2021 sales, with EBIT
growth of 13% and EBIT margin at 12.6%, slightly lower than last
year's 13.2% due to rising oil and logistics costs
    ** Fuchs will report FY results on March 18
    ** Out of 15 analysts that cover Fuchs Petrolub SE, 11 rate
the stock "strong buy" or "buy", ​three "hold", and one "sell"
    

 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))