The shares of Swiss rail manufacturer Stadler Rail surged 22.4% to 30.02 francs on Wednesday, marking the highest level since January 2024 and a two-and-a-half-year peak, after the company reported stronger-than-expected first-half results.
The company’s order intake exceeded expectations by 23%, revenue surpassed analyst forecasts by 6.3%, and underlying profit before interest and taxes came in 16.7% above projections. Net profit, however, fell short of estimates due to higher financing costs, adverse currency effects, and elevated tax burdens. Despite this, one market participant described the results as the first fundamental positive surprise since the company’s 2019 initial public offering.
Analysts responded positively to the figures. Tobias Klöpper, an analyst at Zürcher Kantonalbank, noted that the strong performance reinforced confidence in Stadler Rail’s full-year guidance and supported its medium-term outlook. He highlighted the company’s improved prospects at its Berlin site as a key positive factor, stating that Stadler Rail is well-positioned to enhance profitability and generate sustainable positive cash flows in the coming years. Klöpper maintained a ‘Overweight’ rating on the stock.
The positive analyst sentiment raised the possibility of further share price gains on Thursday. However, valuation concerns emerged as potential headwinds. Michael Foeth of Vontobel retained a ‘Hold’ rating with a price target of 25 francs, which remains below the current share price. The average analyst target, compiled by AWP, stands at 23.13 francs, also trailing the current valuation. This gap increases the likelihood of profit-taking by investors on Thursday’s trading session.
The Swiss Performance Index (SPI) showed little movement on Wednesday, closing 0.08% higher, underscoring the standout performance of Stadler Rail within the broader market.
