GEA: Maintain Our EUR 43 Fair Value on Analyst Transfer; Shares Appeal Despite Soft Orders in 2023

We make no change to our EUR 43 fair value estimate for GEA Group following a transfer of analyst coverage. We also maintain our wide moat rating, Medium Morningstar Uncertainty Rating, and Standard Morningstar Capital Allocation Rating for the leading supplier of highly engineered capital equipment and solutions to the food processing and pharmaceutical manufacturing industries. While GEA’s order intake in the second quarter of 2023 was a touch soft—new orders grew just 2.4% organically—our long-term expectations for robust earnings growth remain unchanged. Consequently, GEA shares screen attractively, trading at a 24% discount to our unchanged fair value estimate.