Supply chain specialists are structural gainers of Europe's capital goods - Stifel

SFS AG

13/04/2023 10:14

** Stifel says "impressive" reporting and
stronger-than-expected working capital lockups across the
European capital goods industry will benefit supply chain
specialists in coming years
    ** It says the ongoing near-shoring trend and growing need
to reduce complexity and cost structures will boost supply chain
solutions specialists like Bossard  BOS.S  and SFS  SFSN.S 
    ** "Broadly diversified companies such as Bossard or SFS
typically reveal strong levels of positive cash generation
allowing the payment of steady dividends and consolidate local
firms at reasonable multiples," it says
    ** Stifel upgrades SFS to "buy" from "hold" citing its "rock
solid track record" and recent acquisition of Hoffmann's tools
distribution business
    ** It raises FY23/FY24 EBIT estimates for SFS by 16% on
average and increases price target to CHF 135 ($151.23) from CHF
104
    ** Stifel keeps "hold" rating for Bossard but says its
long-term IT and personnel investments are "partly
underestimated by the market"
    ** It increases FY23/24 EBIT forecasts for Bossard by 4% on
average, raises price target from CHF 215 to CHF 235
    ** "We do not see major differences on a good level and
therefore prefer the currently cheaper stock of SFS," adds the
broker

($1 = 0.8927 Swiss francs)

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))