HSBC ups WashTec to 'buy' on resilient model, 2022 recovery potential

Washtec AG

07/02/2022 11:26

** HSBC raises WashTec AG  WSUG.DE  to "buy" from "hold",
saying the German car wash system maker's resilient business
model is an advantage in the current market environment
    ** "Resilience of business should attract investors again,"
the broker says, pointing to WashTec's profitable sales, strong
free cash flow profile and "generous" dividend policy
    ** HSBC expects the company's strong recovery, confirmed by
last week's preliminary FY figures  urn:newsml:reuters.com:*:nASN0023DQ, to go on in
2022, as the higher order backlog brought forward to the current
year signals a healthy level of demand
    ** The brokerage also lifts its target price by 4% to EUR
59, which it says results in an "attractive" 18% upside in the
current market situation 
    ** All four analysts that cover WashTec, according to
Refinitiv data, rate the stock "strong buy" or "buy"​
    

 (Reporting by Ana Cantero)
 ((ana.canteroros@thomsonreuters.com))