'Stable in an unstable environment' - DB raises GEA to 'buy'

GEA AG

19/10/2023 10:04

** Deutsche Bank raises GEA Group  G1AG.DE  to "buy" from
"hold", citing the "persistently strong" performance of the
German food processing equipment maker despite sharp input price
inflation 
    ** GEA seems confident that it is able to reach the upper
end of its guidance range, the broker says, noting the company's
target to keep increasing prices 
    ** GEA generates 80% of its revenue from food and beverage
customers, as well as pharmaceuticals, which will limit business
volatility despite growing concerns over a global recession, DB
says
    ** Further increases in interest rates should even benefit
GEA given its net cash position, the broker says
    ** As GEA has started to actively market its "Add Better"
resource-efficient products, DB sees it as beneficial for
customers demand and for GEA's profitability
    ** It expects that the company will sell these products at a
higher margin than the old generations of products
    ** Out of 20 analysts that cover GEA Group, nine rate the
stock "strong buy" or "buy,"​ nine rate it "hold" and two rate
the stock "sell"- LSEG Data


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