FRANKFURT (dpa-AFX) – The long-term business goals of Wacker Neuson (Wacker Neuson SE) gave fresh upward momentum to the shares of the supplier of compact construction machinery on Wednesday. Later in the morning, they rose by 6.3 percent to EUR 21.90, making up part of their losses since their interim high on May 5.
At the beginning of May, the shares rose to EUR 23.30, the highest level since mid-February 2022. The sliding 21-day moving average of just under EUR 21.20, which has been pointing downwards since then, was easily exceeded again at the same time. It signals the short-term price trend to investors interested in chart technology.
The strategic plan was worth a note on the first page of the stock market letter “Bernecker Daily”. “The new strategy update with a view to 2030 will provide impetus today,” wrote the experts and see a 50 percent price chance in the longer term.
They summed up: According to the “Strategy 2030” presented, Wacker Neuson wants to increase sales by 80 percent from 2.25 billion euros in 2022 to 4 billion euros by 2030. Apart from this strong increase in sales, profitability should also increase, the margin should rise from 9 to more than 11 percent over the long term. “Cost reductions and product rounding off in the direction of higher-margin, emission-free machines are intended to boost profitability,” they summarized the basis for the SDAX group’s ambitions.
If this succeeds, earnings per share would rise to more than 4 euros and the price-earnings ratio (P/E) would, according to the Bernecker article, “halve from the currently favorable 10 to 5 by 2030”, with the price remaining unchanged.
Analyst Stefan Augustin from Warburg Research also stated that the construction machinery manufacturer’s targets were significantly higher than its expectations and probably also higher than market estimates. The operating earnings target (EBIT) for 2030, for example, is around 45 percent above its previous assumption.
“An important lever for increasing profitability is the targeted growth in the spare parts and service business with tailor-made measures for each relevant business unit in order to achieve this goal,” emphasized Augustin.
He also referred to further regional expansion efforts, for example in North and South America with a focus on establishing balanced sales channels between independent dealers, authorized dealers and major customers, while at the same time optimizing the product and production portfolio. A cooperation with the US agricultural machinery manufacturer John Deere (DeereCo (John Deere)), which the Warburg expert considers “particularly attractive”, should also contribute to this
Leverage must be between 2 and 20
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