Rational AG

RAA: XETR (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€437.00	Tdwbwjc	Jmbrlvvnd

Rational Earnings: High-Single-Digit Growth Guidance Confirmed Despite Slowdown in Sales

Matthew Donen

Nov 7, 2023

Narrow-moat Rational reported a 1% decline in sales during the third quarter as the benefits of its unusually high order backlog, which had underpinned revenue growth during the first half of 2023, subsided. Results are tracking in line with our expectations. The group remains firmly on track to deliver its full-year guidance of high-single-digit revenue growth. Gross margin expansion of 270 basis points during the third quarter to 57.4%, highlights our intangible asset moat source underpinned by its brand reputation and the cost-savings its products provide to professional kitchens. We maintain our EUR 570 fair value estimate and view shares as fairly valued.

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