Rational rises after Berenberg ups on 2026 China expansion, product launches

Rational AG

08/01/2026 09:06

** Rational RAAG.DE shares rise 3.6%, at their highest level in three months, after Berenberg upgrades the stock to "buy" from "hold"

** The broker sees growth and margin expansion potential from the German kitchen appliances maker's new site in China and launch of products with high average selling price

** Rational is well positioned to deliver 8% organic growth yearly in the medium term, the broker says

** It also notes the shares have underperformed the STOXX 600 .STOXX by 23% in the last two years, due to a cocktail of sub-par growth in a tepid food equipment market, tariffs and currency headwinds

** It says opening a factory in China during Q1 2026 and launching a product for the local market is "arguably the most actionable growth catalyst" for Rational since 2017, but flags risks of volume growth dilution due to lower selling prices

** "We think there is greater upside potential than downside – namely that the company may increase its market share in a growth market for combi ovens," Berenberg says

** It expects price rises in 2026 to partially offset the impact of U.S. tariffs on earnings margin

 (Reporting by Danny Callaghan)

 ((danny.callaghan@thomsonreuters.com))