Multiple occupancy is now feasible - the path has been paved
Informal, Approachable, Straightforward Version:
Looks like we might see two-digit numbers again in the stock game, thanks to some smart moves by this automotive supplier.
This company's been hustling to keep up with the mobility shift, dropping a pretty penny on investments along the way. But not every gamble panned out. The crew's now offloading a couple underperformers, closing two production sites, and scaling back on systems. Numbers don't lie — by 2025, the profit margin should be impressive due to these cuts. In an optimistic 2026, profits could surge even higher, assuming the market's hot and the management's on point. That's the vibe behind the split trading strategy, which sees achievable prices around the 52-week high of 7.40 euros. Analysts from Warburg back this up, putting a target of eight euros on the stock.
The reasoning? By next year, the benefits of these cuts will be obvious. If the long-term plan goes smoothly, double-digit prices could even be in play. This debt-slashing move boosts margin potential, giving the stock a juicier valuation. Racking up around 1.7 billion euros in sales and a margin of about six percent puts the ballpark for prices around ten euros. Investors taking this risk set a safety net just below the 52-week low.
So, who's the doubler here? You'll find out in the HotDeal of the latest BÖRSE ONLINE issue.
This issue has some other intriguing stories:
More to Dig into:
Gas service in Cologne booming:Although engine sales are a bit sluggish, this Cologne company's expansion into the service business is really taking off. Adding weapons business to the mix could make things even more interesting (p.30)
China's market boost:Even in Asia, there's room for Rambo-style action. With a ton of government cash, the Chinese market's excitement is being cranked up. Stocks standing to gain from this (p.38)
Road to recovery:The merger speculation has faded, and this company's stock's taken a hit, trading way below the industry average. Lots of paths to high prices ahead (p.42)
Money in Russia:Greedy investors are speculating wildly about Western companies regaining their Russian participations post-Ukraine peace. Billions are on the table. (p.44)
Double in Two Months:This Brent certificate is still available for less than five euros. Also interesting are two gold and silver papers happening until June, each offering 94 percent potential (p.52)
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The Deal:
[1] - https://www.rolandberger.com/en/global-automotive-supplier-study/[2] - https://www.lazard.com/ideas/the-pattern-of-winning-in-automotive[3] - https://www.kpmg.com/us/en/issuesandinsights/articlespublications/automotive/industry-4-0-springs-into-action.htm
- By slashing debt and increasing investment in mobility solutions, the Swabian automotive supplier aims to boost profits significantly, with analysts predicting that the profit margin could reach impressive levels by 2025.
- Despite the recent challenges in the stock market and the closure of two production sites, the optimistic 2026 forecast suggests that profits could surge even higher due to strategic investment and management focus.
- With the strong potential for margin growth, investors interested in the sector might find the stock of this supplier an attractive proposition, as it currently trades around the 52-week high of 7.40 euros, with a possible target price of eight euros predicted by Warburg analysts.
- The ongoing restructuring process of the company presents an opportunity for investors looking to capitalize on the growing mobility market and potentially double their investments by 2026.
