UBS starts Rational with 'neutral' as growth should continue
13/09/2024 11:40
** UBS starts Rational RAAG.DE with "neutral" rating and
PT of EUR 890, expecting the industrial kitchen retailer's
growth to continue in the future
** The broker expects sales to show compound annual growth
rate (CAGR) of 8% in 2023-28 thanks to two new product launches
and iVario's capacity ramp
** Opex control and plans to deliver a similar margin to
current levels for new products should contribute to EBIT
margins' growth, the broker adds
** UBS says a special dividend in 2024/2025 is likely, but
even without it, broker sees Rational ending 2024/2025 with net
cash of 175 million/253 million euros, adding the company could
potentially consider acquiring a complementary business
** With shares up 30% YTD, the broker says risk/reward
balance is fair
** Shares in Rational are up 1.6% at EUR 889
(Reporting by Amir Orusov)
((Amir.orusov@thomsonreuters.com))