Berenberg Says Rational AG Poised for Growth Over Medium Term; Rating, Price Target Up

10:23 AM EST, 01/08/2026 (MT Newswires) -- Rational AG (RAA.F) is expected to see organic growth annually over the medium term, prompting Berenberg to upgrade its rating and price target for the German industrial kitchen equipment maker. "The shares have suffered in the last two years, underperforming the STOXX 600 by 23%, due to a cocktail of below-average growth in a tepid food equipment market, tariffs and FX headwinds. From here, we are confident that RATIONAL has the toolkit to return to around 8% pa organic growth, while we expect the company to expand margins from the 2026E trough following the ramp-up of its new site in China and the launch of high average-selling-price (ASP) products such as iHexagon," the analysts said in a Thursday note. As such, the rating on the stock was changed to buy from hold and the price target was raised to 790 euros from 780 euros. Berenberg also highlighted Rational's solid underlying business and "little genuine competition" within the category of boiler-based combi oven manufacturers. EPS estimates for 2025 through 2027, on the other hand, were nudged down, while the research firm's projected EPS for 2028 stands 7% higher than consensus.