SRH AlsterResearch AG Update: Rational AG - Remains a SELL despite good start into the year; PT up

Rational AG (Update) Industrial Goods & Services MCap EUR 8.8bn SELL, PT EUR 556.00 (-28% potential) Research_update Rational’s reported mixed Q1 as top-line still remains in the red owing to pandemicrelated challenges in most regions, while profitability expanded. The better-thanexpected March sales and orders, favourable cost situations, along with an improving COVID-19 situation, depleted inventories level and financial stimulus have aided the company to slightly raise its guidance expecting EBIT margin to widen yoy for 2021 (vs flat yoy previously). Meanwhile, it continues to target revenues to grow in the mid-single digit. We maintain our SELL rating but increase our price target from EUR 500.00 to EUR 556.00 amid a faster margin recovery than initially forecast For 5 current investment ideas, check our Weekly Screener. This week we are looking for companies that have the highest Return on Capital Employed (ROCE) Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de