Rational is 'still overvalued, but much tastier now,' DB ups to 'hold'

Rational AG

17/12/2021 07:49

** Deutsche Bank ups Rational  RAAG.DE  to "hold" from
"sell", saying that the German kitchen appliance manufacturer is
"still overvalued, but much tastier now" 
    ** DB says that since its January downgrade to "sell",
Rational's share price has come down while the broker's future
earnings forecasts slowly but steadily have gone up 
    ** It notes that both trends had an effect on Rational's
relative valuation and in its wake multiples came down, to a
still elevated level though 
    ** "We believe that once the effects of coronavirus tail
off, market conditions should return to normal and Rational can
return to its former growth path" - DB
    ** However, it adds that this will take some time and
Rational's EBIT might not return to a pre-crisis level before
the end of 2023 
    ** The shares are up 0.5% in early Frankfurt trade
        

 (Reporting by Elizaveta Gladun in Gdansk)
 ((elizaveta.gladun@thomsonreuters.com))