DB resumes Lenzing with 'hold', as time needed to see fruits of restructuring program
20/10/2023 12:40
** Deutsche Bank resumes coverage of Austrian chemicals
company Lenzing LENV.VI , rating it "hold", deeming patience
needed to see the fruits of the firm's recent restructuring
program
** DB flags that major input costs for the Austrian firm
remains elevated, as well as its exceptionally high leverage
ratio, that it would need to bring down as fast as possible
** The broker underlines Lenzing's prime role in the
production of environmentally-friendly textile fibers, which
benefits from increasing consumer interest
** "We are convinced that Lenzing will become an integral
part of a solution to clean up the textile industry, justifying
a higher terminal growth rate assumption" it writes
** Lenzing announced late in 2022 a cost-cutting and
re-organization program aimed at saving around 70 million euros
annually, citing deterioration the market environment
** Deutsche Bank sets a price target of 45.00 euros, thus
seeing a 22% upside compared to Lenzing's share price at close
on Thursday
** Out of 7 analysts that cover Lenzing AG, one rates the
stock "buy" and six rate it "hold"
(Reporting by Tristan Veyet)
((Tristan.chabba@thomsonreuters.com))