Rieter: Baader Helvea sees opportunity in recovery, starts with "add"

Rieter Holding AG

05/03/2021 08:09

** Baader Helvea initiates textiles machinery maker Rieter
 RIEN.S  with "add" (PT CHF 127.5), seeing short-term
opportunity from pent-up demand after supply chain issues in
China
    ** After cyclical "low" years for textile in 2019 and 2020,
Baader Helvea expects demand to have increased due to a pushback
from globalisation and consumer reluctance to buy textiles from
China
    ** Broker flags impacts of a U.S. ban on cotton made in
China's Xinjiang Uyghur Autonomous Region, based on indications
of forced labour, affecting 20% of global cotton production
    ** It estimates orders will grow to CHF 250 mln ($269.08
million) per quarter, pointing to more than CHF 1 bln annual
sales and a CHF 100 mln EBIT
    ** Baader believes Rieter will create value for shareholders
in years of market recovery, but buy has doubts that it will
manage it over the business cycle
    ** Out of 7 analysts that cover Rieter Holding AG, three
rate the stock "strong buy" or "buy,"​ 3 "hold" and one rates
the stock "sell"

($1 = 0.9291 Swiss francs)

 ((sarah.morland@thomsonreuters.com; +48 58 769 65 92;))