in view of the increasing fears of a cyclical downturn, analysts assessed the share of the forklift manufacturer Kion sceptical. It is necessary now to avoid so-called short-cyclical companies such as Kion, but also Schneider Electric, writes Goldman Sachs-analyst Daniela Costa in a new study on the European capital goods sector.
The risks that the experts majority swipe their estimates to be on the increase. Costa lowered, therefore place your thumb over the two values, and recommended it for sale. The objective of the course of the Kion-paper cut you, among other things, due to the adjustment of the forecasts to the cost of capital and lower estimates of 59 to 42 euros. Currently, the share of the note certificates in the case of more than 44 Euro.
Costa sees growing cyclical challenges for industrial trucks. The beat at the Kion group generated sales in the past year, 80 per cent of their operating profit, with fork-lift trucks, to the office. “During the last downturn, all of the forklift trucks had manufacturer loss,” she says. In addition, weaker environment, the pressure on margins increases in growth.
Weak cash flow
the Negative impact of the group on the case by the fact that he had one of the strongest credit-financed company under the observed industry values, and in the last few quarters, always a weak free cash flow. The free cash flow of stocks between the first and the third quarter of 2018 due to growing stock, and problems of delivery dropped by about 40 percent, according to the analyst.
KION GROUP AG — — (–) Xetra London SE Int. Level 1Tradegate exchange Switzerland OTCLang & Schwarz, Frankfurt, Stuttgart, Switzerland, Vienna 1T 1W 3M 1J 3J 5J For detail view
fears Costa also expressed in terms of the Kion group, belonging to the machinery – and plant engineering, Dematic. The encouraging growth could stumble, as the construction of Camps in the United States could have arrived at its peak.
the investment Bank Merrill Lynch has cut the target price for Kion from 68 to 60 Euro, but the share of the forklift truck manufacturer as a buying opportunity. Following the sell-off in October, the discount amounts to 15 percent for the sector, writes Analyst Alexander Virgo. In comparison to the competitors, Jungheinrich, Kion have more room in the margins.