DB sees no major profit growth at Sixt over next two years - cuts to 'hold'

Sixt SE

14/07/2023 08:48

** Shares in Sixt  SIXG.DE  fall about 5% after Deutsche
Bank cuts rating on the German car rental company to "hold" from
"buy"
    ** Deutsche Bank says it thinks that profits will come down
this year, in line with guidance
    ** "We also don't expect major profit growth over the next
two years", the brokers adds 
    ** The broker says that without positive earnings momentum
and in the context of a worsening trading environment, it makes
sense to move down to a "hold" until the macro uncertainties
resolve and until signs of earnings momentum improving again
become tangible
    ** The stock, on track for its worst day since May 24, sits
at the bottom of German mid-caps index  .MDAXI  
    ** Out of 11 analysts, eight rate Sixt "strong buy"/"buy"
and three "hold"
 

 (Reporting by Elizaveta Gladun)
 ((elizaveta.gladun@thomsonreuters.com))