Drägerwerk share: 2023 with light and shadow - analysts see opportunities despite moderate growth outlook in 2024

Drägerwerk share: 2023 with light and shadow - analysts see opportunities despite moderate growth outlook in 2024

According to a report by www.finanzen.net The medical and safety technology group Drägerwerk announced that after a significant increase in sales in 2023, they only expect moderate growth in the current year. Meanwhile, the expert criticized the business outlook for 2024, in particular the forecast for the operating profit margin.

For the current year, Drägerwerk is targeting an increase in sales of 1.0 to 5.0 percent, adjusted for currency effects. 2.5 to 5.5 percent of sales should remain as an operating profit margin (EBIT margin). According to preliminary calculations, revenue in 2023 increased year-on-year by 13.2 percent, adjusted for currency effects, to almost 3.4 billion euros. The operating profit margin improved to plus 4.9 percent.

Drägerwerk shares should be watched on Tuesday following the release of key figures for 2023 and the announcement of a dividend increase. The stock turned positive in early XETRA trading after price losses at the start of trading. According to a trader, the preliminary figures for 2023 were surprisingly good, as was the announced increase in dividends. However, the company only raised its annual targets in December.

It should be noted that the operating profit margin forecast is disappointing and that short-term investors may cash in intraday after the recent price gains. The 50- and 21-day lines could then also come into focus as indicators of the short to medium-term trend, both of which are still pointing slightly upwards. The price only jumped above these average prices on Friday after analyst Christian Ehmann from Warburg Research upgraded the shares from “Hold” to “Buy” and raised the price target from 57 to 62 euros.

With the positive news and the announcement of the dividend increase, Drägerwerk shares could be supported for the time being. However, it is important to closely monitor the development of the operating profit margin and the increase in sales in the current year in order to analyze the long-term impact on the share price and company growth.