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RIEN: Lower Discount Rate Will Support Future Share Price Upside

Analysts Maintain Rieter Holding Price Target as Valuation Metrics and Forecasts Remain Stable

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RIEN
AnalystConsensusTarget
Not Invested
Published 16 Mar 2025

Update shared on 09 Dec 2025

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Analysts have modestly raised their price target on Rieter Holding, citing slightly stronger long term revenue growth expectations and a lower discount rate, partly offset by a reduced profit margin outlook and a higher assumed future P/E multiple.

What's in the News

  • Rieter Holding lowered its full year 2025 sales guidance to around CHF 700 million, down from a previous range of CHF 750 million to CHF 800 million, while still targeting an EBIT margin at the lower end of 0% to 4% (company guidance).
  • The company confirmed that fourth quarter 2025 sales are expected to be sequentially stronger than earlier quarters, but slightly below 2024 levels on a year on year basis (company guidance).
  • Rieter completed a follow on equity offering raising approximately CHF 400.7 million through a rights issue of 116,809,075 new common shares at CHF 3.43 per share (company filing).
  • Earlier, the company filed follow on equity offerings totaling about CHF 478.1 million, including a CHF 400.7 million rights issue and a CHF 77.4 million subsequent direct listing of 14,576,270 shares at CHF 5.31 (company filings).
  • A special shareholders meeting is scheduled for September 18, 2025, in Winterthur, Switzerland, where investors are expected to vote on key capital and governance items (company announcement).

Valuation Changes

  • Fair Value: unchanged at CHF 3.68 per share, indicating no revision to the core valuation estimate.
  • Discount Rate: decreased slightly from 7.49% to 7.43%, reflecting a modest reduction in perceived risk or cost of capital.
  • Revenue Growth: edged up marginally from 26.92% to 27.07%, signaling a slightly more optimistic long term growth outlook.
  • Net Profit Margin: reduced moderately from 7.81% to 6.92%, pointing to a less favorable profitability profile in future forecasts.
  • Future P/E: increased meaningfully from 0.15x to 0.17x, implying a higher valuation multiple being applied to projected earnings.

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