FRANKFURT (dpa-AFX) - Wacker Neuson 's long-term business goals provided fresh upward momentum for shares in the compact equipment supplier on Wednesday. They moved up 6.3 percent to 21.90 euros later in the morning, recouping some of their losses since their interim high on May 5.

At the beginning of May, the shares had risen to 23.30 euros, their highest level since mid-February 2022. The 21-day moving average at just under 21.20 euros, which has since been on a downward trend, was easily crossed again. It signals the short-term price trend to investors interested in chart technology.

The strategy plan was worth a note on its first page in the Borsenbrief "Bernecker Daily". "The new strategy update with a view to 2030 will provide impetus today," wrote the experts, who see a 50 percent price opportunity in the longer term.

They summed up, saying that according to the "Strategy 2030" presented, Wacker Neuson aims to increase revenue by a whopping 80 percent from EUR 2.25 billion in 2022 to EUR 4 billion by 2030. In addition to this strong increase in revenue, profitability is also set to rise, with margins increasing from 9 to over 11 percent on a sustainable basis. "Cost-cutting and product restructuring in the direction of high-margin zero-emission machines are expected to boost profitability," they said, summarizing the basis for the SDax group's ambitions.

If this succeeds, earnings per share would rise to more than 4 euros and the price-earnings ratio (P/E ratio) would "halve from the current already favorable 10 to 5" by 2030, according to the Bernecker article, with the share price remaining unchanged.

The construction equipment manufacturer's targets are well above its expectations and probably also above market estimates, analyst Stefan Augustin of Warburg Research also stated. The operating earnings (Ebit) target for 2030, for example, is around 45 percent above his previous assumption.

"An important lever for increasing profitability is targeted growth in the spare parts and services business with tailored measures for each relevant business unit to achieve this target," Augustin highlighted.

He also referred to further regional expansion efforts, for example in North and South America, with a focus on establishing balanced sales channels between independent dealers, authorized distributors and major customers, while at the same time optimizing the product and production portfolio. A cooperation with the US agricultural machinery manufacturer John Deere, which the Warburg expert considers "particularly attractive," should also contribute to this./ck/tih/mis