Kone: Deutsche Bank initiates coverage with hold rating
(CercleFinance.com) - On Tuesday Deutsche Bank initiated coverage of Finnish lift manufacturer Kone's stock with a hold rating and a target price of 41 euros.
In a sector report, the broker emphasises that the market has so far been supported by China, the world's largest market, a situation that it believes is being called into question by the slowdown in the country's growth.
Deutsche Bank points out that lift manufacturers have until now traded at a premium to the stockmarket, thanks to the strength of their service business, their sound profitability and the long-term growth that they have enjoyed, although believes that this structural expansion is now set to fade.
With this in mind, the broker has just prefers Switzerland's Schindler, which it believes offers a more attractive entry point.
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