Deutsche Bank downgrades Keller, says investment case has played out for now
Deutsche Bank downgraded on Thursday to 'hold' from 'buy' as it said the investment case has played out, for now.
The bank, which cut its price target to 1,660p from 1,800p, said effective management actions over the last five years or so have contributed to an impressive transformation in financial metrics, alongside a substantial upgrades cycle, resulting in the share price doubling since late 2023.
Notably, a 7% FY24 EBIT margin was 40% above its 10-year average and 28% return on capital employed nearly double its average.
"However, group profits fell double digits in H224, and guidance for a return to a normal H2 weighting this year implies a further fall year-on-year in H1-25, before requiring high growth in the second half to meet FY consensus," DB said.
At 1248 BST, the shares were down 4.7% at 1,366p.
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