GEA Group Improves Guidance for the Year, Implying Greater Order Visibility

GEA Group increased guidance for the year with the midpoint of organic revenue growth at 6%, up from the previous 2.5%. The EBITDA midpoint guidance improved by 11%. For a company that used to seem like serial profit warner, we welcome the upgrade. Both targets are now above our full-year forecasts. EBITDA guidance is roughly 7% above our forecasts at the midpoint. The new revenue guidance range of 5%-7%, implies mid- to high-single-digit organic revenue growth over 2019. We believe GEA has better order visibility prompting the upgrade. We will review our forecasts when full second-quarter results are released on Aug. 13. We maintain our EUR 35 fair value estimate and wide moat rating.