Drägerwerk stock gets Berenberg Buy rating, EUR 156 target

Berenberg has started coverage of Drägerwerk AG & Co. KGaA with a Buy rating and a EUR 156 price target, according to AD HOC NEWS. The report published on Thursday, November 12, said the bank sees a profitability inflection driven by Drägerwerk's margin-focused strategy.

Safety leads the investment case

Berenberg forecasts compound annual EBIT growth of 12.3% through 2028. The bank expects the group EBIT margin to rise from 6.7% in 2025 to 8.4% in 2028, while sales are projected to grow by 5.2% a year from 2026 through 2028.

The Safety Technology division is central to the thesis. Berenberg said operations have improved after the supply-chain disruptions of 2022, helped by price management, better procurement and lean-management measures. The bank expects a richer product mix and manufacturing efficiencies to support a recovery in Medical Technology from 2028.

Berenberg also pointed to the lifting of a US Food and Drug Administration warning letter, which it said reopens the US patient-monitoring market. Its earnings estimates are 14% above consensus for 2027 and 2028. The bank models a mid-cycle EBIT margin of 8.4% in 2028 and 8.7% in 2030, below management's 10% target for 2030.

Orders rise as quarterly margin weakens

Drägerwerk's nine-month results provide a mixed operating backdrop. Currency-adjusted order intake rose 3.6% to EUR 2,673.5 million and sales increased 5.3% to EUR 2,453.9 million through September. Safety Technology order intake rose 13.1%, while Medical Technology sales increased 4.4%.

Group EBIT climbed to EUR 111.8 million from EUR 77.1 million, but the comparison included EUR 27.9 million in customs refunds, including EUR 20.1 million in the third quarter. Third-quarter EBIT fell to EUR 48.0 million from EUR 56.7 million as personnel, logistics and IT costs weighed on profitability. Drägerwerk kept its 2026 forecast for currency-adjusted sales growth of 2% to 6% and an EBIT margin of 6% to 8%.

Drägerwerk stock traded at EUR 102.10 on Lang & Schwarz at 08:57 CET on Wednesday, November 11, 2.41% above the Xetra close of Tuesday, November 10. The price indication predates the scheduled Capital Markets Day, which Berenberg expects to provide more detail on the margin-improvement plan.

German equities provide the broader market backdrop for Drägerwerk stock through the DAX.

Investors can follow further developments on the Drägerwerk stock news and analysis page.