Shares of Swiss train manufacturer Stadler Rail extended gains on Thursday, rising 1.1% to 30.34 Swiss francs after a 22.4% surge the previous day brought the stock to a two-and-a-half-year high.
The continued advance follows the release of unexpectedly strong half-year results on Wednesday, which also prompted upgrades from several analysts. Orders exceeded expectations by 23%, revenue surpassed forecasts by 6.3%, and operating profit came in 16.7% above projections. Net profit, however, fell short of expectations due to higher financing costs, currency effects and increased tax expenses.
A market participant described the results as the first fundamental positive surprise since Stadler's 2019 IPO. Analysts broadly welcomed the figures, with Zürcher Kantonalbank's Tobias Klöpper noting the company had reinforced confidence in its full-year guidance and strengthened its medium-term outlook. Klöpper, who maintained an overweight rating, highlighted management's upbeat assessment of operations in Berlin as a key positive, stating it suggested the company was well-positioned to improve profitability and generate sustainable positive cash flows in the coming years.
Vontobel analyst Michael Foeth upgraded his rating to hold while raising his price target to 30 francs from 25 francs, citing normalized operations after two challenging years and accelerating revenue and profitability growth. Foeth emphasized Stadler's strong reputation among customers for reliability, technology and innovation leadership.
U.S. banks also revised their targets: Citigroup increased its price target to 30 francs from 21.50 francs with a neutral rating, while JPMorgan set a new target of 24.50 francs from 22 francs and maintained an underweight rating.
