Berenberg cuts Rational to 'hold', sees softer 2024 for sales growth
03/10/2023 07:36
** Berenberg cuts Rational RAAG.DE to "hold" from "buy",
expecting the industrial kitchen retailer's growth in 2024 to be
softer, as it is fuelled by a backlog that could erode in the
short-term
** Shares are down 2.8% in early Frankfurt trade
** The broker adds that the future of Rational's business
and its growth potential are already baked in the present
valuation
** Berenberg adds that order trends indicate that 2024 may
be a softer year for sales growth, unlikely to bring material
positive catalysts
** It sees little reason for Rational to deviate from its
8-10% growth track
** While the brokerage forecasts a margin in line with the
historical average of 25-26% of EBIT, it is "lukewarm" on the
overall narrative
** Berenberg points to the fact that customers are seeking
smaller ovens, which tend to be less profitable for Rational
(Reporting by Paolo Laudani)
((Paolo.Laudani@thomsonreuters.com))