(Updated version with closing prices)
FRANKFURT (dpa-AFX) - A slightly better-than-expected profitability target for the current year gave Gea shares a boost on Monday amid a weakening overall market.
With a gain of over two percent to 62.10 euros, the plant manufacturer's shares were among the top performers on the Dax. The lead index, which had slumped below 23,000 points in the morning due to soaring oil prices, ended down nearly one percent at 23,409.37 points as oil prices fell back below 100 US dollars. So far this year, Gea has recorded a gain of more than seven percent, while the Dax has seen a loss of over four percent.
UBS analyst Sven Weier noted that Gea had already released fourth-quarter figures for order intake, revenue, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in January. "Today's additional news is: order intake exceeded expectations thanks to orders over one million euros and strong free cash flow," he wrote.
Other analysts particularly highlighted the forecast for the operating margin. "We had expected an EBITDA margin corridor of 16.6 to 16.8 percent," wrote DZ Bank analyst Thorsten Reigber. However, Gea is "somewhat more optimistic at the upper end" with its stated range of 16.6 to 17.2 percent.
JPMorgan expert Akash Gupta now sees an upside potential for EBITDA of around one percent compared to the average analyst estimate (consensus). He also pointed to the surprisingly strong business performance in the Liquid & Powder Technologies, Food & Healthcare Solutions, and Heating & Refrigeration Technologies segments. Regarding the Middle East crisis – which Gupta says accounts for about 3 percent of order intake – he noted that Gea is better equipped here than the rest of the industry.
Citigroup expert Klas Bergelind also noted positively that the plant manufacturer operates in "typically defensive end markets."/ck/la/mis
