Bossard Holding stock price target lowered to CHF160 by UBS on weak demand

UBS lowered its price target for Bossard Holding AG (SIX:BOS) to CHF160 from CHF163, while maintaining a Sell rating, following the Swiss fastening technology company's weaker-than-expected second-quarter results. The adjustment reflects UBS's revised outlook anticipating significant demand challenges for Bossard's European operations in the second half of 2025. This led to a forecast of -1% organic sales growth for fiscal year 2025 and a 3-4% reduction in adjusted earnings per share estimates for 2025-2027.

Analysis

UBS has reiterated its bearish stance on Bossard Holding AG (SWX:BOSN) by maintaining a 'Sell' rating and reducing its price target to CHF160 from CHF163. The adjustment is a direct response to the company's weaker-than-anticipated second-quarter 2025 results. The core of UBS's revised outlook centers on significant demand headwinds expected for Bossard's European operations in the latter half of 2025. This negative view is partially mitigated by an expectation of continued growth from the firm's Asia-Pacific units. Consequently, UBS has revised its full-year 2025 forecast for Bossard to a -1% organic sales decline, followed by modest 2% growth in both 2026 and 2027. This top-line pressure translates to a 3% cut in the fiscal 2025 adjusted earnings per share (EPS) estimate and a 4% reduction for both 2026 and 2027, with adjusted EBIT margins projected to remain flat at 10.0% before a minor increase to 10.1% in 2027.

Key Decisions for Investors

• Given UBS's maintained 'Sell' rating and multi-year downward revisions to earnings estimates, investors holding Bossard may consider reducing their positions.
• Traders should closely monitor incoming economic data and company reports related to European industrial demand, as this has been identified as the primary driver behind the negative forecast.
• The performance of the Asia-Pacific business segment should be watched as a potential mitigating factor, as its continued growth is the main positive offset in an otherwise challenging outlook for the company.