PVA Tepla spikes after Berenberg raises to 'buy'

Pva Tepla AG

12/01/2023 10:11

** Shares in PVA Tepla  TPEG.DE  jump 7.9% after Berenberg
upgrades the German industrial equipment maker to "buy" from
"hold", citing trimmed consensus estimates and well-flagged weak
near-term outlook for semiconductors among others
    ** From peak levels in 2021, consensus EBIT estimates have
now been cut by about 18% for 2023 and 2024 to just shy of
management's 2024 guidance as a result of slower-than-expected
order intake in 2022, the broker says
    ** It notes that cyclical headwinds facing the semiconductor
industry in 2023 should be well anticipated by the market by
now, as both large chipmakers, like Intel  INTC.O  and TSMC
 2330.TW  and sub-suppliers, like VAT Group  VACN.S , have
discussed sluggish end-market demand and capex cuts
    ** Moreover Q3 record order backlog offers attractive
visibility on earnings, and shares are now trading at a
double-digit discount to peers, it says
    **  The stock is at the top of German's small-cap index
 .SDAXI  
    ($1 = 0.9297 euros)
 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))