RBC cuts GEA, sees 'rocky' path to reach targets

GEA AG

21/03/2025 10:31

** RBC downgrades GEA Group G1AG.DE to "sector perform" from "outperform", citing higher one-off costs that could prove to be a challenge to its long-term targets

** The broker sees a "rocky path" towards the German food component supplier's 2030 targets based on historical growth data for GEA and the current state of the global food processing industry

** The industry has stable volumes and good momentum in dairy markets but high prices are blocking a recovery, it says

** RBC reduces its 2025 net profit estimate for GEA by 14% to 416 mln euros, trailing consensus by 7%

** It notes the company's shares have re-rated by about 60% in the past year and now trade in line with the sector

** Out of 19 analysts that cover GEA, 10 rate the stock "strong buy" or "buy," ​eight rate it "hold" and one rates the stock "sell"

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))