KNNGF - KION: Upside After Q1 2025 Remains Solid, Despite Tariffs

2025-05-27 07:58:23 ET

Summary

• KION remains a long-term recovery play, with strong upside potential, despite recent macro and tariff headwinds impacting near-term results and margins.
• Q1 2025 results were mixed: order intake rose 11%, but revenue and EBIT declined; service segment strength offsets new business lag.
• The valuation is still attractive, but I lower my price target to €68/share, reflecting increased risks and KION's history of missing targets.
• I maintain a 'Buy' rating, seeing the Company as fundamentally safe, well-run, and undervalued, with 3–5 year upside and growing dividends.

Dear readers/followers.

In this article, I will give you an update on one of my larger industrial investments, KION Group (KIGRY). This company is interesting in a way where I believe the upside remains high, despite an unprecedented earlier level of tariff fear. In fact, it's one of the companies where I think you can sort of "follow" the level of fear on tariffs and the like by looking at the company's share price and valuation....

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