On Tuesday, Deutsche Bank (ETR:DBKGn) adjusted its outlook on Saf Holland SA shares (SFQ:GR), a leading trailer, truck, and bus supplier, raising the price target to €22.00 from the previous €20.00. The firm maintained a "Hold" rating on the stock.
The revision follows Saf Holland's pre-release statement about a month ago, which highlighted a beneficial second quarter driven by a strong product mix. This mix included a higher proportion of the more profitable aftermarket business, which contributed positively to the company's financial performance.
Saf Holland's ability to navigate market normalization in Europe and North America for the truck and trailer segment was also noted. Despite encountering lower volumes in the Original Equipment (OE) segment, the company managed to counterbalance this through early adjustments to its production footprint and by leveraging positive synergies from its acquisition of Haldex.
Additional support for the company's revenue is expected to come from the acquisitions of Tecma and IMS. These strategic moves are anticipated to bolster Saf Holland's financial position in the industry.
Deutsche Bank forecasts that Saf Holland will report revenues of €506 million, marking a 9% year-over-year decrease. Nonetheless, the company is expected to maintain a robust adjusted EBIT margin of 10.8%, reflecting its effective management and strategic initiatives in the face of market challenges.
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