Oddo BHF has raised its recommendation on Kone shares from 'neutral' to 'outperform', a move that also comes with an upwardly revised price target of 53 euros, compared with 45 euros previously.

The analyst estimates that the Group's sales growth should return to 5% per annum from 2025 onwards, and that t the adjusted EBIT margin could reach 14% by 2027.

The question now is whether the Group will be able to find a growth driver capable of compensating for what China has been in the past, and whether it therefore deserves to return to its historical multiples", asks the broker.

Oddo BHF believes that the modernization segment (19% of sales in Q4 2023) could play this role, with 'high-single digit' growth expected every year.

The new CEO is expected to present his strategic vision at the CMD (investor day) at the end of September, stresses Oddo BHF, which has raised its estimates by 1.4% for 2024 and 4% beyond. Our estimates are higher than those of the consensus (2%) from 2025 onwards', it concludes.


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