Are DOGE layoffs set to resume?
On Wednesday, Deutsche Bank’s analysts revised their outlook on Jenoptik AG (JEN:GR) shares, reducing the price target from EUR 26.00 to EUR 23.00 while maintaining a Hold rating on the stock. The adjustment follows Jenoptik’s announcement of first-quarter earnings for 2025, which fell short of market expectations in several key financial metrics.
Jenoptik reported that its sales, EBITDA, and order intake all missed consensus estimates by 2%, 11%, and 4%, respectively. Despite the lower-than-anticipated figures, the company has chosen to uphold its full-year guidance. A notable area of concern highlighted by Deutsche Bank was the Semiconductor & Advanced Manufacturing (S&AM) segment, which saw a significant 42% year-over-year decline in orders. This included a substantial one-off order cancellation worth approximately €20 million, attributed to a design change that is not expected to impact revenue until 2026—a situation described as a non-competitive loss.
The group’s EBITDA experienced a 19% year-over-year decrease, while earnings per share (EPS) dropped by 40% year-over-year to €0.16. These declines were largely due to a less favorable product mix and singular costs incurred from the relocation of Jenoptik’s Dresden factory.
Deutsche Bank’s report on Jenoptik’s performance emphasizes the challenges faced by the company in the first quarter of 2025, particularly in the S&AM business unit. Despite these setbacks, Jenoptik’s reaffirmation of its yearly targets suggests a level of confidence in its ability to recover in the remaining quarters of the year. The revised price target by Deutsche Bank reflects the near-term uncertainties but also indicates a neutral stance, suggesting that the analysts see potential for stabilization in the company’s performance.
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