On Thursday, Schindler Holding AG received a Buy rating from Jefferies, with a price target of CHF240.00. The company reported a 5.5% order growth in local currencies, exceeding expectations by 4%. However, orders in China fell by 20%, and new installations dropped by 30%.
Despite this, modernization orders rose by 20%. Revenue was 2% lower than expected, and adjusted EBIT missed forecasts by about 1.5 percentage points. Schindler updated its North America modernization growth forecast to 5-10%, up from 0-5%. Full-year guidance is unchanged but suggests a 5% drop in Q4 adjusted EBIT.
Schindler also announced a CHF500 million buyback program, showing confidence in its financial health and commitment to returning value to shareholders.
InvestingPro Insights
InvestingPro highlights Schindler’s strong financial position, noting it has more cash than debt. This supports the recent buyback announcement. Schindler has paid dividends for 18 years, emphasizing its focus on shareholder returns. Currently, the stock is close to its 52-week high, reflecting positive investor sentiment and order growth.
For more details on Schindler Holding AG, InvestingPro provides additional insights into the company’s financial status.
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