SBO AG shares moved higher on Monday after Kepler Cheuvreux revised its recommendation on the Austrian oilfield equipment manufacturer from Reduce to Hold. In early trading the stock advanced about 2% to EUR30.15, outpacing a 0.4% drop in Austria's ATX 5 benchmark.
The broker said a roughly 20% decline since its previous downgrade has already priced in a large portion of potential downside, prompting the change to a less bearish stance while leaving its EUR29 price target unchanged.
Kepler described a mix of ongoing risks and improving indicators. The firm highlighted the potential for upside being constrained by lingering uncertainty around 2026 earnings expectations. At the same time, it pointed to a steady pickup in order backlogs over recent quarters as evidence that the most acute phase of the downturn may be behind the company.
The brokerage also said that the reduction in logistical concerns linked to the Strait of Hormuz has eased a material operational risk for SBO, thereby strengthening the investment case. Kepler judged that the current share price already reflects most of the remaining downside and therefore no longer warranted a negative recommendation.
On forecasts, Kepler made only limited adjustments to its 2026-27 projections. Sales were trimmed by roughly 0.1%, while adjusted EBIT was left broadly unchanged. The firm's 2026 revenue estimate sits at about 2% below consensus, although it expects second-quarter EBITDA to be broadly in line with market expectations.
Kepler also noted that despite a challenging 2025 for the company, SBO's solid cash position provides support for its dividend policy.
Market reaction
Following the note from Kepler Cheuvreux, SBO shares rose 2% to EUR30.15 in early trading. The move contrasted with a 0.4% decline in Austria's ATX 5 index during the same period.
Analyst view and estimates
Kepler's reassessment reflects a view that much of the downside risk is already embedded in current market prices. The brokerage kept its EUR29 price target unchanged and made minimal changes to its medium-term forecasts - reducing sales by about 0.1% for 2026-27 and maintaining adjusted EBIT.
Kepler flagged that its revenue projection for 2026 remains roughly 2% below consensus, while anticipating second-quarter EBITDA broadly in line with market expectations.
Dividend and balance sheet
The broker concluded that SBO's strong cash position is a buffer that supports the company's dividend policy, even as it expects 2025 to be a difficult year operationally.
Note: This report is based solely on the information contained in the broker update and market movements described above; no additional sources were used.