Berenberg raises Hornbach to 'buy' on Q1 beat, recovery prospects

Hornbach Holding AG & Co KGaA

01/07/2024 08:48

** Berenberg upgrades Hornbach Holding  HBH.DE  to "buy"
from "hold", citing better-than-expected Q1 results of the
German DIY store group
    ** The broker says Hornbach's Q1 adjusted EBIT of around EUR
146 million ($157 million) was about 17% above its estimate and
around 18% above the consensus
    ** It forecasts that the company's adjusted earnings will
recover from around 2025 on, when it expects consumer sentiment
to improve
    ** Berenberg notes Hornbach's "solid" gain in market share
during the pandemic, which the broker believes will sustain the
company's growth over the next years
    ** Out of the five analysts that cover Hornbach, three rate
the stock "strong buy" or "buy" and two rate it "hold"
    ** The stock is up 3.5%, among top performers of the German
small-cap index  .SDAXI 
    
  
($1 = 0.9289 euros)

 (Reporting by Bernadette Hogg)
 ((Bernadette.hogg@thomsonreuters.com))