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Research

Kone: Right direction, but a bumpy road

By Erkki VesolaAnalyst
Kone
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KONE’s Q2 figures were inconsistent. The order intake fell more than expected, but net sales, and especially profitability, surprised positively. KONE specified its 2023 guidance upward. Our estimate changes are minor but positive. After the share price drop, KONE’s share starts to approach a neutral valuation. However, we stick to a cautious position on the share and reiterate our Reduce recommendation and our target price of EUR 47.50.

Kone

45.47EUR20.07.2023, 18.00
47.5EURTarget price
Reduce
Changed from:Reduce
Recommendation updated:21.07.2023

Kone is a manufacturer of elevators, escalators and automatic doors. Examples of other associated products and systems that the company provides include barriers, docking systems and traffic gates. Today, the company's products are resold in all global regions via authorized resellers. Kone was originally founded in 1910 and is headquartered in Espoo.

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Key Estimate Figures21.07.2023

202223e24e
Revenue10,906.711,371.211,971.8
growth-%3.7 %4.3 %5.3 %
EBIT (adj.)1,076.61,301.51,505.0
EBIT-% (adj.)9.9 %11.4 %12.6 %
EPS (adj.)1.591.982.23
Dividend1.751.751.80
Dividend %3.6 %3.2 %3.3 %
P/E (adj.)30.527.324.2
EV/EBITDA18.218.615.1
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