Kion slides as Citi cuts amid German market slowdown

Kion AG

09/09/2024 08:51

** Shares in Kion Group  KGX.DE  slip around 2% after Citi
cut the German truck maker to "neutral" from "buy," warning of
"sluggish" near-term growth in its home market
    ** The broker says Germany's challenging economic situation
could dampen Kion's growth as the group generates over 17% of
its sales in the country
    ** Despite a backlog in the Industrial Truck and Services
division, Citi thinks there is a "downside risk to 2025 orders
estimates"
    ** Though Kion's valuation is cheap compared to history and
the sector, Citi says its ROCE/growth framework suggests the
current multiple is "not unreasonable", given the growth/ROCE
outlook
    ** Citi says it has lowered its 2025 EBIT forecast for Kion
by around 6%, which is 5% below VARA consensus
    ** Up to the previous session's close, shares were down 17%​
YTD; stock at the bottom of Germany's mid-cap  .MDAXI  index


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