HSBC downgrades Rational to 'hold', sees upcoming recession hit
16/01/2023 13:42
** HSBC downgrades Rational RAAG.DE to "hold" from "buy",
saying the likely scenario of an upcoming recession limits
further upside of the German professional kitchen supplier
** The broker says a recession would likely have a negative
impact on consumer spending (people eating out less) which would
negatively impact investments by professional kitchens
** However, it says first two weeks of 2023 saw a re-rating
with the market appreciating Rational's strong fundamentals
(high growth and high margins), as well as high quality and
financial solidity
** Rational share price is up 12% year-to-date after falling
38% in 2022
** The stock is down 1.8%
(Reporting by Andrey Sychev)
((Andrey.sychev2@thomsonreuters.com))