Berenberg "hold my beer" for Krones, flagging macro-risks

Krones AG

08/09/2022 08:05

** Berenberg initiates coverage of Krones  KRNG.DE  with a
"hold" rating, seeing potential dent in FY 2023 results despite
strong FY 2022E with expected record-breaking order intake and
backlog
    ** The broker forecasts for the German packaging maker in FY
2022 order intake to reach EUR 5.2 bln ($5.21 billion), a 20%
growth year-on-year
    ** Although it deems the Bavarian firm to be able to absorb
a 10% inflation, Berenberg flags macroeconomic risks such as
ongoing supply chain issues, raw material price increases,
rising energy costs & wages, as well as potential order
postponements, with bigger impact on profitability
    ** Brokerage therefore sees Krones achieving an FY 2023
EBITDA margin at 7.3% compared to 8.5% in FY 2022E
    ** Out of 14 analysts that cover Krones AG, 12 rate the
stock "strong buy" or "buy" and two rate it "strong sell" or
"sell"

($1 = 0.9989 euros)

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