Knaus Tabbert AG Faces Market Challenges Amid Production Adjustments

First Berlin Equity Research GmbH has updated its research on Knaus Tabbert AG, maintaining its BUY recommendation while lowering the target price from €54 to €50. The update follows a nine-month report closely aligned with revised estimates after an October profit warning. Both revenue and earnings suffered due to a reduction in production aimed at assisting dealers in managing high inventory costs and reducing the company's own working capital. The measures, which include price discounts on older models, might extend into early 2025.

Despite strong market indicators such as RV registrations, Knaus Tabbert's market value has dropped by about 46% since challenges for dealers were disclosed in July. Although the business model is not deemed broken, new management must work to restore credibility in the capital markets. The company's focus will be on leveraging its strengths to regain its growth trajectory. The revised DCF model supports a €50 target price and reaffirms the BUY recommendation.