Kone: Jefferies gives big lift to rating
(CercleFinance.com) - Jefferies has upgraded its rating on Kone shares directly to 'buy' (from 'underperform') increasing its corresponding target price from 53 euros to 70 euros, perceiving upside potential of 6%-7% for the 2022 earnings consensus for the Finnish lift operator.
"A policy-driven contraction of China property combined with cost inflation headwinds have weighted on the shares for over a year," the broker notes, although believes that this is coming to an end.
"A combination of China easing and no more cost inflation driven downgrades should set the stage for the shares to outperform," it adds, seeing the stock revaluing to a 2022 EV/EBITA multiple of 22x.
The share has indeed gone up a floor today, up over 2% in afternoon trading.
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