Inbox: Polytec analysts expect pre-Corona margins as early as 2022


Emailed from / found at: Erste Group Research (BSN note: scrolling text in the original of the sender, title (always) and images (often) by from the photo archive)

From Erste Group’s Equity Weekly: In our new Company Report on Polytec, we are raising our recommendation from accumulate to buy with a new price target of EUR 12.30 / share (previously: EUR 5.90 / share). The jump in price target is based on our higher estimates.

Outlook. After the slump in sales as a result of the Corona crisis in the first half of 2020, the automotive market and thus the supplier industry is recovering faster than originally expected. Although new car registrations in the EU-27 fell by almost 20% in the first two months of 2021, we still expect an increase of 11% for the year as a whole. The German carmakers massively reduced costs last year, which should strongly support profitability this year and even enable the pre-crisis levels to be reached. At Polytec, we now expect that the pre-Corona margins can be reconnected as early as 2022 (previously: 2024). For 2020 we are now anticipating sales of EUR 523 million (-17% y / y), a significantly higher EBITDA of EUR 47 million as a result of a positive one-off effect from a company sale and a profit of around EUR 4 million.

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Inbox Polytec analysts expect preCorona margins early


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