Jefferies upgraded German forklift and warehouse automation maker Kion Group to "hold" from "underperform" after a 24% year-to-date stock decline. The brokerage lifted its price target to €56 from €51, citing limited downside risk as shares trade at what analysts call a more defensible valuation. At €52.10, the stock implies roughly 7% upside to the new target.

Kion's market capitalisation stands at €6.8 billion, with shares trading at approximately 11x price-to-earnings on 2027 estimates, below the long-term average of 12x. The brokerage set its new price target using this 12x multiple on 2027 earnings. Management guidance suggests no near-term recovery in Germany's industrial sector, with the industrial trucks division remaining the core concern.

Jefferies projects divisional adjusted EBIT margins of 9.8% in 2026, rising to 10.2% by 2027 and 2028, driven by €90 million in restructuring savings. The warehouse automation unit shows more promise, with management targeting 10%-plus adjusted EBIT margins by 2027. The brokerage cut its 2026 adjusted EBIT estimate by 3% to €956 million and projected revenues of €11.821 billion in 2026, rising to €12.781 billion by 2028.