Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Deutsche Bank lowers Bertrandt shares target amid profit warning and demand reduction

EditorEmilio Ghigini
Published 2024/07/30, 10:26
BDTG
-

On Tuesday, Deutsche Bank (ETR:DBKGn) revised its price target for Bertrandt AG (BDT:GR) shares, a German engineering company, to €33.00 from the previous €50.00, while maintaining a Hold rating on the stock.

This adjustment follows Bertrandt's issuance of a profit warning earlier in the day, citing lower than expected profitability for the fiscal third quarter and a reduction in full-year guidance. The company attributed these changes to a temporary decrease in capacity demand from some customers, leading to a reduced utilization rate and project delays.

Bertrandt AG reported project postponements and cancellations as a direct consequence of the decreased capacity demand. The company, however, anticipates that demand will normalize in the short-to-medium term, although it admits that the current visibility on when exactly demand will pick up is limited. Despite the recent operational challenges, Bertrandt emphasized that this should not be interpreted as an indication of a broader market downturn.

The engineering firm identified Germany as the primary region experiencing temporary project delays. The profit warning and the subsequent adjustment of the company's full-year outlook have led to Deutsche Bank's reassessment of Bertrandt's stock value. The bank's analyst pointed out that the current operational disruptions are specific to Bertrandt and do not reflect a general market weakness.

In light of the profit warning, the updated price target of €33.00 represents a significant decrease from the previous target, reflecting the immediate financial impact of the reduced demand and project disruptions on Bertrandt's expected performance. The company's stock rating remains at Hold, indicating that Deutsche Bank advises investors to maintain their current position in the stock at this time.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.