On Thursday, Schindler Holding AG (SCHN:SW) received a Buy rating from Jefferies, with a price target of CHF240.00. The company reported a 5.5% growth in orders, exceeding expectations by 4%. However, orders in China fell by 20%, with new installations down 30%.
On a positive note, modernization orders rose by 20%. Schindler’s revenue was 2% below expectations, and adjusted EBIT was around 1.5 percentage points short of forecasts. The company now expects modernization growth in North America to be between 5-10%, up from the previous estimate of 0-5%. Despite these challenges, Schindler’s full-year guidance remains the same, but Q4 adjusted EBIT may drop by 5%.
Schindler also announced a CHF500 million buyback program, showing confidence in its financial health and commitment to shareholder returns.
InvestingPro Insights
InvestingPro data reveals that Schindler has more cash than debt, highlighting its strong financial position. The company has paid dividends for 18 years, reinforcing its commitment to investors. Currently trading near its 52-week high, Schindler shows positive order growth and an improved outlook in North America.
For more detailed insights, InvestingPro offers additional tips on Schindler Holding AG’s financial situation and market standing.
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