High share price but competitive edge - Exane ups TePla to 'neutral'

Pva Tepla AG

04/04/2023 10:46

** Exane BNP Paribas upgrades PVA TePla  TPEG.DE  to
"neutral" from "underperform", saying the German industrial
equipment maker has a competitive edge with solid fundamentals
    ** It expects the company to outperform wafer fab equipment
capex this year, which could lead to an upgrade of its 2024
targets
    ** The broker says the shares, currently trading at around
EUR 22/share, remain expensive, but notes the expected sales
CAGR of 16% in 2022-2024 is above sector average
    ** "2023 and 2024 fundamentals look strong and PVA TePla has
a strong technologic edge in certain areas, driving demand," the
brokerage adds
    ** Exane lifts 2023-2024 EBITDA estimates by 10%-11% and
raises target price by 11% to EUR 20
    ** Out of nine analysts that cover PVA TePla, six rate the
stock "strong buy" or "buy" and ​three "hold"
    ** The stock rises 5% in morning trade, taking YTD gains to
19.9%

 (Reporting by Paolo Laudani)
 ((Paolo.laudani@thomsonreuters.com))