🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Lindt shares target raised by Deutsche Bank, rated Hold

EditorAhmed Abdulazez Abdulkadir
Published 25/06/2024, 07:28 pm
LISN
-

On Tuesday, Deutsche Bank (ETR:DBKGn) adjusted its price target for Lindt & Spruengli (LISN:SW) (OTC: LDSVF), increasing it to CHF 103,000 from the previous CHF 102,000, while maintaining a Hold rating on the stock. The firm cited Lindt's robust long-term prospects but noted the potential for near-term volume pressure due to anticipated cocoa price hikes.

The bank's analyst pointed out that Lindt is expected to navigate the industry challenges better than its competitors, emphasizing the attractiveness of the company's global growth narrative over the long term. Despite this, the analyst suggested that possible short-term volume dips could offer a more favorable point for investors to buy into the stock.

In light of modest revisions to earnings per share (EPS) forecasts, with a slight decrease of 0.8% for the fiscal year 2024, the analyst provided updated valuation metrics. Based on these revised projections, Lindt's stock is trading at 19.1 times its estimated 2025 enterprise value to EBITDA (EV/EBITDA) and 36.1 times its estimated 2025 price to earnings (PE). Additionally, the stock offers a 3.0% free cash flow (FCF) yield to enterprise value (EV).

Comparatively, the Staples sector, excluding Tobacco, is valued at 12.8 times its estimated 2025 EV/EBITDA and 20.4 times its estimated 2025 PE, with a 4.3% FCF yield to EV. The analyst highlighted that Lindt's valuation is currently aligned with its median long-term valuation relative to the European market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.