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Deutz: The share is undervalued

At Deutz you can feel the effects of the pandemic in the second quarter. Sales fell by 41 percent to 280 million euros. The consensus stood at 267 million euros. Incoming orders are down 39 percent to 267 million euros. The consensus here was € 255 million. The third quarter is also likely to be shaped by the consequences of the pandemic.

Deutz intends to generate annual sales of 2 billion euros by 2022. This medium-term goal is confirmed. The adjusted EBIT margin should be between 7 percent and 8 percent.

The DZ Bank analysts forecast a loss per share of EUR 0.44 for 2020 (old: EUR -0.11). As before, earnings per paper of EUR 0.36 are assumed for 2021. In 2022 it should be 0.70 euros (old: 0.67 euros) per share.

The experts stick to the buy recommendation for Deutz shares. The price target increases from 5.20 euros to 5.60 euros.

The analysts see the bottom reached in the second quarter. There should be clear positive effects on EBIT in the coming years.

According to analysts, the share is still undervalued compared to its competitors. The PER 2021e is 12.9, the peer group is 15.3.

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