Five unlucky years on the stock market: Stadler Rail shares are well below issue price

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April 12, 2019 was a big day for Stadler Rail: daughter Ladina managed to herald the future stock market fortune of her father Peter Spuhler (65) at SIX, after which trading in Stadler shares began for the first time.

The issue price at the time was: 38 francs per share, corresponding to a value of 3.8 billion francs of the group and instantly making Spuhler millions richer. After a lot of previous hype (Spuhler had referred to “the people’s stock” at the time) Stadler shares fired a price rocket that day. There was an increase of over 13 percent at the end of the first trading day. Spuhler’s move on the stock market continued merrily over the next few months.

Stadler investors then experienced a crash throughout 2022: from 47.20 francs at the beginning of the year, the stock fell to an all-time low of 26.14 francs on October 11, 2022. This is due to the strong franc and financial losses.

Share price suffered

Stadler’s share has not yet recovered from this situation in a sustainable way. In the last 12 months, the highest value was 38.10 francs and the lowest was 26.38 francs.

Today, almost five years after its listing on the stock exchange, the newspaper’s price is still around 28 francs. And this despite the fact that the rolling stock manufacturer’s profits rose to almost 139 million francs. According to the company’s own statements, this is the highest value since the IPO and the record high order backlog cannot convince investors. “Of course we cannot be happy with the share price,” Stadler Rail CEO Markus Bernsteiner (58) said at the annual media conference. His statement: The takeover of Canadian rival Bombardier by French rival Alstom in January 2021 impressed Stadler. “Many other external influences” also played a role. He refuses to let Blick get anything more out of him.

Neither did boss Spuhler, who, unlike previous years, was nowhere to be seen at the company headquarters in Bussnang TG at Wednesday’s media conference.

Expert says Stadler has “good prospects”

Since the stock market’s inception, Thurgauers have lost about a quarter of their value on the stock market. There has been a 7 percent decrease since the beginning of the year alone. This means Stadler shares are performing significantly worse than the broader market (SPI), which is up about 4 percent over the same period.

Vontobel analyst Michael Foeth (52) believes the current share price reflects Stadler’s problems arising from the strength of the franc. A “long-term view” is required to make a judgment. And here Spuhler’s company generally has good prospects. Sooner or later, these are likely to be reflected in rising share prices.

Stadler Rail actually expects higher sales and profits in the coming years. Ultimately, stock analysts still disagree: Some recommend buying the stock, others recommend holding it, and still others recommend selling it. What advice would Boss Spuhler give to his shareholders?

Source :Blick