Stifel has raised its recommendation on Geberit from 'hold' to 'buy', with a target price raised from 515 to 600 Swiss francs, following the announcement of a decline of just 1.4% in organic sales in the first quarter, thus outperforming consensus (-4%).
The broker explains this smaller-than-expected decline by better-than-expected sales trends in Europe (-2% in organic terms), including a surprisingly solid business performance in Germany (in line with European performance).
Stifel is raising its sales assumptions for the Swiss sanitaryware manufacturer by 3% over 2024 and 2025, as well as its EPS projections by 11% and 7% respectively, with an EBITDA margin assumption that is more stable than declining this year.
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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 
