Berenberg raises price target for Aalberts

Berenberg has increased its price target for Aalberts from 50.00 to 52.00 euros while maintaining a buy rating. Analyst Christoph Greulich noted that the company's organic revenue growth accelerated to 13 percent in the third quarter, significantly exceeding both Berenberg's 5 percent expectation and the 6 percent consensus estimate.

The semiconductor division was a standout performer, recording 34 percent organic growth and 87 percent reported growth. However, EBITA margin development lagged behind expectations, improving by approximately 130 basis points. This shortfall was attributed to higher holding costs and continued weak profitability within the construction segment.

Greulich anticipates that the EBITA margin will not return to its historical level above 15 percent until 2028. Despite a 50 percent share price increase since the start of the year, the analyst considers the valuation attractive. Aalberts aims for revenue exceeding 4.5 billion euros and an EBITA margin above 18 percent by the end of the decade.