Exciting news for investors as Jefferies recently upgraded its rating for Munters Group (MTRS:SS) stock from Hold to Buy, setting a price target of SEK 260.00. This adjustment comes with a projected 23% upside potential from the current share price, presenting a lucrative opportunity for those looking to capitalize on the recent dip in value. Despite a 10% decline in share value over the past three months, Jefferies views this as an ideal entry point, especially with negative sentiment from U.S. competitor Vertiv weighing on Munters’ stock.
Specializing in climate-control technologies, Munters Group is well-positioned to tap into growth areas like batteries and data centers. With a sizable installed base, the company also stands to benefit from expanding service opportunities over time. Jefferies is optimistic about Munters’ growth prospects in the latter half of 2024, forecasting an 18% year-over-year sales increase and an adjusted EBITA margin of 14.0%, up from 13.5% in the previous year. Strong showings in the Data Center Technology (DCT) and FoodTech segments, as well as a modest rebound in AirTech, are expected to be key drivers of this growth.
Looking further ahead, Jefferies projects a compound annual growth rate (CAGR) of 13% for sales and 16% for adjusted EBITA over the three-year period from 2023 to 2026. This positive outlook is underpinned by Munters’ strategic focus on expanding its Software as a Service (SaaS) offerings in the FoodTech space, which is anticipated to enhance efficiency and profitability in the near to mid-term.
This article was created with AI assistance and reviewed by an editor. For more information, please refer to our Terms & Conditions.