Berenberg has initiated coverage of GEA Group with a Buy rating, setting a price target of EUR73, implying a 19% upside. This positive outlook is driven by GEA's strong presence in the food and beverage sector, which accounts for roughly 70% of its projected 2025 sales.

Analysts predict GEA's earnings per share will grow by approximately 10% annually through 2028. This growth is anticipated from a 3% organic order intake, ongoing cost reductions, and positive service sales mix. Berenberg expects a substantial increase in pre-tax return on capital employed between 2025 and 2028.

GEA's EUR3.4 billion order backlog provides strong growth visibility. Berenberg projects over 5% sales growth in 2026, fueled by robust demand, especially in the dairy sector and emerging markets. Furthermore, the firm anticipates EUR1.6 billion in financial firepower by the end of 2027 for share buybacks and acquisitions.

Currently trading at 12 times estimated 2026 EBIT, GEA's stock presents a 28% discount compared to its capital goods peers, according to Berenberg. The firm sees the recent 7% decline as an attractive entry point. Investors are likely to watch for an announced buyback program in 2027.