Cabka N.V. Sees Positive Momentum with Increased Profit Margins

A recent update from First Berlin Equity Research maintains a positive outlook on Cabka N.V. The analyst Ellis Acklin reiterated his BUY recommendation, holding steady the target price at €3.40. Cabka's six-month report indicates significant traction in their turnaround efforts. Sales have increased by 6% year-over-year, reaching €96 million. More crucially, the gross margin improved by 220 basis points to 51.9%, and EBITDA surged by approximately 50% to €13.6 million, extending the margin to 14.2%.

European markets played a vital role in this growth, aided by a favorable product mix and operational leverage. The 'Shift' program's final benefits also contributed positively. A temporary spike in polymer and energy prices briefly affected client investments toward the end of the second quarter. However, management reports a swift recovery in ordering behavior, with tender activities resuming to their previous levels.

The company's guidance remains optimistic, expecting increased sales and a higher EBITDA margin. This recovery is seen as internally driven, not reliant on external economic factors.