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- Raute - Flat guidance above our expectations
Raute - Flat guidance above our expectations
Demand still buoyant, yet uncertainty is rising
Raute disclosed already in January that 2018 sales and EBIT would be higher than previously expected. Consequently, yesterday’s results presentation provided little new concrete information. Many of Raute’s pre-existing customers have already invested heavily during the past few years. While the major markets have been developing positively and Raute’s customers’ mills have been running at high utilization rates, we are waiting to see how the company’s order book will develop during the first months of 2019.
We maintain our HOLD rating and EUR 27 target price
Raute’s flat guidance for 2019 gives us pause to consider if our own estimates are too pessimistic. Yet we are not updating our projections this time. We will revise our estimates if Raute’s order intake for the beginning of 2019 comes in higher than we are currently expecting.