Stifel starts Koenig & Bauer with 'buy' as packaging market drives growth

Koenig & Bauer AG

17/05/2022 10:41

** Stifel initiates Koenig & Bauer  SKBG.DE  with "buy" and
price target of EUR 24, citing the German printing press
manufacturer's "attractive" business model and clear margin
expansion
    ** It says the market is overly focused on structurally
declining banknotes and traditional print businesses, whose
share in Koenig & Bauer's sales has gradually declined over the
past few years
    ** The broker highlights the company's portfolio shift, as
the booming packaging industry represents about 70% of its
machine sales 
    ** Stifel foresees sales growth driven by the Bavarian-based
firm's investments in digital and corrugated markets
    ** Out of four analysts that cover Koenig & Bauer, three
rate it "strong buy" or "buy" and ​one "hold" 

 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))