Schaeffler: Not entirely convincing

Schaeffler’s sales fell by 6 percent to 3.4 billion euros in the third quarter. That meets the expectations. The adjusted EBIT margin of 9.4 percent, however, is well above the estimates. The DZ Bank had expected 7.5 percent, the consensus was 7.9 percent.

For the year as a whole, Schaeffler expects a decline in sales of 11.5 percent to 13 percent. The margin is seen at 4.5 percent to 5.5 percent. The consensus is -13.1 percent and 4.5 percent respectively.

Schaeffler aims to achieve a margin of 4 percent to 6 percent in the automotive sector by 2025. In the spare parts business it should be 13 percent to 15 percent. The industrial sector should come to 12 percent to 14 percent.

According to these forecasts, the analysts at DZ Bank confirm the hold recommendation for Schaeffler’s shares. The price target increases from EUR 6.00 to EUR 6.30.

The margin forecasts are not entirely convincing. The automotive sector in particular is seen as a disappointment.

The experts expect Schaeffler to post a loss per share of EUR 0.55 in 2020 (old: EUR -0.59). In 2021 there should be a profit per paper of 0.53 euros (old: 0.68 euros).

Schaeffler’s shares gain 2.2 percent in the afternoon to EUR 6.145.


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