Baader Helvea ups OC Oerlikon to 'add', sees stabilization

OC Oerlikon AG, Pfaeffikon

07/08/2023 08:05

** Baader Helvea upgrades OC Oerlikon  OERL.S  to "add" from
"reduce", saying the Swiss industrial group's stock could
stabilize as it is now getting close to its bottom following
last week's Q2 results
    ** On Thursday, the company cut its EBITDA margin target for
2023 again as order intake kept falling in the second quarter
due to weak filament fibre demand from China
    ** The broker says once consensus is updated to a more
realistic level, further downgrade momentum is likely to wane
somewhat, particularly when valuation comes more into focus
    ** It adds that while the prepayments situation may not
improve, the other net working capital elements in Oerlikon's
cash flow should at least stabilize going forward
    ** Oerlikon shares have fallen around 30% year-to-date
    ** Shares edge up 1% 

 (Reporting by Bartosz Dabrowski in Gdansk)
 ((bartosz.dabrowski@thomsonreuters.com; +48 58 7696560;))