Barclays starts Jungheinrich at 'overweight' on expected sales recovery
22/09/2023 08:28
** Barclays initiates electric truck and logistics firm
Jungheinrich JUNG_p.DE at "overweight", citing upsides from
expected cyclical recovery and Warehouse Automation unit
expansion
** With 84% of Jungheinrich's 2022 sales coming from Europe,
the company will gain greatly once macro conditions improve in
the region, Barclays says, seeing gradual sales recovery from
2024
** It notes the group is backing its small but growing
Warehouse Automation business through investments and
acquisitions of firms such as SSI, which the broker expects to
pay off
** "We expect more sales contributions coming from the space
going forward, given the long-term industry secular growth,
leverage from each of Jungheinrich's and SSI's existing presence
in the US to allow cross-selling, as well as contributions from
new in-house technologies like PowerCube" -Barclays
** The shares have room to rise, Barclays says, with the
company currently trading at large 2024E P/E discounts vs its
historical average and competitor Kion KGX.DE
** Ten out of 15 analysts who cover Jungheinrich rate the
stock "buy", four "hold" and one "sell" - LSEG
(Reporting by Louis van Boxel-Woolf)
((Louis.vanBoxel-Woolf@thomsonreuters.com))