Jefferies Upgrades Munters Group Stock to Buy with 23% Upside Potential
Jefferies has upgraded its rating for Munters Group (MTRS:SS) stock from Hold to Buy, setting a price target of SEK 260.00. The firm sees a 23% upside potential from the current share price, viewing the recent share value drop as a buying opportunity. Munters Group, known for its climate-control technologies, is well positioned to capitalize on growth in sectors like batteries and data centers. With a large installed base, the company is expected to generate additional service opportunities in the future.
Jefferies anticipates significant growth for Munters in the second half of 2024, projecting sales growth of 18% year-over-year and an adjusted EBITA margin of 14.0%. The firm expects strong performance in the Data Center Technology and FoodTech segments, as well as a modest recovery in AirTech. Looking ahead, Jefferies forecasts a compound annual growth rate (CAGR) for sales and adjusted EBITA of 13% and 16%, respectively, over the period from 2023 to 2026. The firm is optimistic about Munters' focus on expanding its Software as a Service (SaaS) offerings in the FoodTech space, which is expected to enhance efficiency and profitability in the near to mid-term.
In summary, Jefferies' upgrade of Munters Group stock to Buy with a price target of SEK 260.00 suggests a strong investment opportunity with significant growth potential. Investors may consider taking advantage of the current share price dip as the company is poised for expansion in key sectors and is expected to deliver solid financial performance in the coming years.
