Stifel maintains its 'hold' rating on Geberit shares, with its target price raised from CHF 480 to CHF 515, pointing to the higher valuation multiples of other reference companies.
The analyst expects sales and EPS for fiscal 2024 to fall by -0%/-1% and -3%/-1% in 2025 respectively.
We expect a lower EBITDA margin in FY24 and an improvement thereafter", he says.
The broker nonetheless believes that better momentum in its main markets and/or better-than-expected sales growth thanks to the proceeds of launches and/or growth initiatives 'could significantly raise [its] forecasts'.
'In the short term (for Q1 2024 and FY24), however, we expect lower volumes and margins', the analyst firm stresses.
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Geberit AG is the European leader in designing, manufacturing, and marketing sanitary systems intended for the construction and building renovation sectors. Net sales break down by family of products as follows:
- sanitary plumbing systems (38.3%): complete installed sanitary systems (showers, bathtubs, toilets, bidets, sinks, urinals, etc.), ball-valves, trigger plates, flush tanks, siphons, etc.;
- sanitary ceramic products (31.2%);
- pipe systems (30.5%): systems and conduits made of stainless steel, carbon steel, and copper, for draining water from buildings and roofs, distributing water and gas, etc.
At the end of 2021, the group had 26 production sites worldwide.
Net sales are distributed geographically as follows: Switzerland (9.5%), Germany (31.3%), Eastern Europe (10.1%), Nordic Countries (9.6%), Benelux (8.4%), Italy (6.8 %), Austria (6.2%), France (5.4%), the United Kingdom and Ireland (3.1%), Iberian Peninsula (0.8%) and other (8.8%).
GEBERIT AG 
