SMT Scharf: Don’t overestimate the situation

SMT Scharf has published a sales and profit warning. You have to write off 6.6 million euros, including on a subsidiary in Canada. This results in one-off effects that push EBIT to -5.4 million euros in the third quarter.

Society is also feeling the reluctance to demand for all types of mining products created by the pandemic. In addition, there are still problems with the approval of special motors in China. However, there should also be potential to catch up.

Overall, the analysts at Pareto Securities are very relaxed about the current situation. You confirm the buy recommendation for the shares of SMT Scharf. The analysts see the price target at EUR 9.80.

You refer to the strong balance sheet, and SMT is also strongly positioned in a niche market. So you should be able to survive the current difficult situation.

The shares of SMT Scharf gain 7.3 percent today to 7.60 euros.


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