Jefferies starts Krones with 'buy' on strong growth outlook

Krones AG

26/08/2025 08:37

** Jefferies initiates coverage of Krones KRNG.DE with "buy" rating, as it expects the German packaging and bottling machine maker to benefit from a growing packaged beverage market

** "With clear strategy, strong execution, and a robust financial profile, we believe it is well positioned to grow ahead of the market," it says

** It highlights the company's leading position in packaged beverage market formats such as glass and can packaging as well as its automation and sustainability focus

** Jefferies also points to positive megatrends, such as population growth, urbanization and rising middle-class consumption in emerging markets

** The broker notes Krones trades on 9x EV/EBIT '26,  below historical averages and sector peers

** Strong results over the last 5 years as well as "solid cash generation, improving returns and a robust balance sheet" should underpin multiple re-rating, the broker concludes

 (Reporting by Emanuele Berro)

 ((emanuele.berro@thomsonreuters.com))