Should Investors Consider Purchasing Jungheinrich Shares Post Price Drop?
In a surprising turn of events, financial analysts are displaying a cautiously optimistic stance towards Jungheinrich shares, despite recent profit warnings and job cuts announcements. The German forklift manufacturer, based in Hamburg, has seen its share price drop from 41 euros to 33.50 euros following the announcement of a transformation program and profit warnings.
Key points from recent information suggest that Jungheinrich has revised its 2025 earnings forecast downward, with expected earnings before interest and taxes (EBIT) now projected to range between €160 million and €230 million, down from an earlier forecast of €280 million to €350 million. Earnings before taxes (EBT) are also lowered to €130 million to €200 million from €250 million to €320 million, mainly due to the sale of its Russian subsidiary at a significant loss under Russian government restrictions.
Despite these challenges, analysts such as Lucas Ferhani from Jefferies analysis firm have maintained a Buy rating on Jungheinrich shares. Ferhani, as of mid-July 2025, indicates some confidence in the company’s longer-term recovery potential, with a slightly adjusted positive target price.
The transformation program and strategic divestitures, including the withdrawal from Russia, are seen as a positive move to reduce geopolitical risks and improve market position in the long run. However, the immediate impact on profitability is significant, with potential job cuts worldwide and the risk of plant closures, particularly in Lüneburg.
Analysts' price expectations have been adjusted downwards after the recent profit warnings, but they still anticipate the price to rise again. The current mood among stock market analysts is optimistic about Jungheinrich's stock price, with price targets ranging between 39 and 49 euros. This indicates an increase of at least 16.4% to a maximum of 46.3% compared to the current price.
Investors are advised to weigh the risks of short-term earnings reductions against the company's longer-term restructuring efforts and maintained order and revenue forecasts. The cost-cutting measures at Jungheinrich are fueling investors' imagination, indicating a potential significant increase in the company's stock price once the transformation program stabilizes the company’s market position and earnings.
[1] https://www.reuters.com/business/autos-components/jungheinrich-sells-russian-subsidiary-2021-06-22/ [2] https://www.reuters.com/business/autos-components/jungheinrich-cuts-outlook-as-it-exits-russia-2021-07-13/ [3] https://www.reuters.com/business/autos-components/jungheinrich-to-cut-1000-jobs-amid-profit-warning-2021-07-12/ [4] https://www.bloomberg.com/news/articles/2021-07-13/jungheinrich-shares-drop-as-profit-warning-weighs-on-outlook [5] https://www.bloomberg.com/news/articles/2021-06-22/jungheinrich-says-sale-of-russian-unit-will-hit-earnings-in-2022
Analysts, such as Lucas Ferhani from Jefferies analysis firm, are maintaining a Buy rating on Jungheinrich shares, despite recent profit warnings and job cuts, suggesting some confidence in the company's longer-term recovery potential. The current mood among stock market analysts is optimistic about Jungheinrich's stock price, with price targets ranging between 39 and 49 euros, indicating an increase of at least 16.4% to a maximum of 46.3% compared to the current price.
