Kone lifted to 'buy' by Citi on Thyssenkrupp deal synergy hopes
Citi upgraded Finnish elevator maker Kone to "buy" from "neutral" citing credible synergy opportunities from the proposed acquisition of Thyssenkrupp Elevator. The broker set a price target of EUR 63.
Citi raised Finnish elevator maker Kone to "buy" from "neutral", citing credible synergy potential from the proposed acquisition of Thyssenkrupp Elevator. The broker set a price target of EUR 63 and said management's estimate of EUR 700 million in savings over three years looks credible. Citi said there is significant scope for service synergies through higher service density and added that a resolution to EU antitrust concerns should be achievable. 5 times 2027 enterprise value to earnings before interest, taxes and amortization.
The firm added that the low bar for the deal's likelihood gives the stock a "positive risk/reward" that sits slightly below its no-deal scenario. LSEG data show 22 analysts cover Kone, with 13 rating it "strong buy" or "buy", eight at "hold" and one at "sell".