'Dived too deep': Barclays ups Rational over U.S. market gains

Rational AG

02/10/2025 07:23

** Barclays upgrades Rational RAAG.DE to "overweight" from "equal weight" citing leading quality and expected market share gains in the U.S. market

** The broker notes the German food tech firm's shares hit a 10-year low, seen as too deep considering its "sector-leading quality" and reflecting an "unlikely sales/margin decline scenario"

** Pessimistic scenarios, such as double-digit sales drop and margin decline due to tariffs, are already priced in, Barclays says

** It also expects the company to gain further market share in the U.S. thanks to its leading products and "strong after sales services", as current stronger-than-peer sales growth YTD is not seen as driven by pre-buy orders alone

** It confirms Rational's long-term sales growth potential, carried by a possible further increase in market penetration and new products

** Co's shares are seen up 3.8% in early Frankfurt trade

** Out of 17 analysts that cover Rational AG, six rate the stock "strong buy" or "buy", ​seven rate "hold" and four​ rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Emanuele Berro)

 ((emanuele.berro@thomsonreuters.com))