Berenberg raises Rational to 'buy', sees strong upside potential
18/10/2021 07:45
** Berenberg raises Rational RAAG.DE to "buy" from "hold",
citing upside potential as the German kitchen appliance
manufacturer is currently undervalued
** The broker says the company's potential is an around 50%
upside to current share price levels, and it believes 1,170
euros per share is the current fair value of the business
** It sees potential for the total addressable market to
expand and the company's ability to raise its prices
** Berenberg raises its 2021 estimates (EBIT up by 39%) to
catch up with the levels already communicated by the company
** It also raises its 2022 and 2023 estimates (EBITDA up by
14% and 18%, respectively) after "pencilling in price increases
to the tune of around 7%," which it says would trigger a
recovery in gross margin as volumes pick up again
** Rational shares are up 2.9% in early Frankfurt trade
(Reporting by Alexander Kloss)
((alexander.kloss@tr.com))