Warburg Research Lowers Target for Jungheinrich to €47 - 'Buy'

Analysts at Warburg Research have downgraded their target price for Jungheinrich AG (ETR: JNG) to €47 from €50, while maintaining their 'buy' rating on the stock.

The downgrade comes after Jungheinrich reported disappointing third-quarter results, with revenue and earnings both falling short of expectations.

Warburg Research analysts said in a note to clients that they are "becoming more cautious on Jungheinrich's near-term prospects due to the challenging macroeconomic environment."

They added that "while we continue to believe in Jungheinrich's long-term potential, we believe that the current headwinds will weigh on the company's performance in the near term."

Jungheinrich's shares fell 4.2% to €35.96 in early trading on Thursday.

The downgrade from Warburg Research is the latest in a series of negative analyst notes on Jungheinrich.

Last month, Deutsche Bank downgraded the stock to 'hold' from 'buy', while Berenberg cut its target price to €45 from €50.

The negative analyst sentiment comes as Jungheinrich faces a number of headwinds, including the ongoing war in Ukraine, rising inflation, and supply chain disruptions.

Despite the challenges, Warburg Research analysts remain optimistic about Jungheinrich's long-term prospects.

They said in their note that "Jungheinrich is a well-positioned company with a strong market position and a solid financial foundation."

They added that "we believe that the company will be able to weather the current headwinds and emerge stronger in the long term."