(Finance) – Mediobanca he cut to 19.50 euros per share (from the previous 20.00 euros) the target price on CAREL Industriesa group listed on Euronext STAR Milan and active in the production of components to achieve high energy efficiency in the air conditioning and refrigeration markets, confirming the recommendation “Neutral” on the stock, after the company delivered a weaker-than-expected set of third-quarter 2024 results.
Analysts write that the corporate visibility remains extremely low with a significant portion of the order book covering 5 to 10 days of sales, preventing management from having a clearer picture of the 2025 sales growth trajectory. Based on the 4Q24 outlook and comments made on the conference call, the broker has reduced 2024-26 sales estimates by approximately 4% on average, assuming a sequential acceleration in 2025, also aided by some replenishment of heat pumps, commercial and industrial HVAC. Additionally, he expects many of the cost containment actions to remain in the coming quarters, allowing the company to reach its historical EBITDA margin range (19%-20%) again. In terms of net result, it has reduced 2024-26 adjusted EPS estimates by approximately 5% on average.