Barclays rates GEA Group 'overweight' on longer term margin potential
** Barclays initiates coverage of GEA Group G1AG.DE with "overweight", as it sees potential for long-term margin progress and earnings upgrades for the German food-processing equipment maker
** The brokerage sees the investment case based around self-help rather than economic factors and says the CEO has done a good job since taking the role in 2019
** The near-term outlook shows subdued recovery in food and beverages volumes and capital expenditure, Barclays says, seeing limited potential for earnings revisions near-term
** The brokerage expects FY 2025 organic revenue to come in lower than consensus but margins above consensus
** But it projects revenue growth at around 4% for 2026-2027 and sees the top end of margin guidance as achievable
** Of 20 analysts that cover GEA Group, 14 rate the stock "strong buy" or "buy", five rate the stock "hold" and one rates it "sell"
Reporting by Bernadette Hogg
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