The shares of brake manufacturer Knorr-Bremse are currently under pressure after two major analyst firms, Citigroup and JPMorgan, have significantly downgraded their assessments for the company.
Reasons for the Downgrades
Citigroup (Citi)
- Citi has lowered its recommendation for Knorr-Bremse from “Buy” to “Neutral” and reduced the price target from €97 to €92.
- The main reason is concerns regarding the U.S. truck market, particularly weak order intake for Class 8 heavy trucks. This makes a recovery in the second half of 2025 seem unlikely.
- Citi expects a decline in adjusted EBIT in 2025 in the mid-single-digit percentage range and sees a negative risk-reward ratio for the stock in the second half of the year. The positive effects from cost savings are not expected to become visible until 2026.
- The short-term dynamics of the truck market are seen as a key factor likely to influence the stock price over the next six months.
JPMorgan
- JPMorgan has downgraded its rating from “Overweight” to “Neutral” while maintaining a price target of €93.
- This adjustment is based on the fact that the stock has already shown an exceptional performance this year and thus has little further upside potential in the short term.
- No significant new impulses are expected in the second half of the year that could further drive the stock price. Therefore, analysts recommend a cautious investment approach.
Significance for Investors
These downgrades signal potential challenges and uncertainties, especially in the important U.S. truck market segment, as well as a limited short-term growth perspective despite positive long-term initiatives at Knorr-Bremse.
Investors should therefore act cautiously and be aware that the stock price could come under pressure in the near future due to these negative assessments.
Current Stock Development
Despite these analyst signals, the Knorr-Bremse stock has been in a long-term upward trend since April 2025, with an increase of around +13% until the end of June; on June 26, 2025, the important technical mark of the 100-day line was even exceeded. This shows some resilience in the market, but caution is warranted given the analysts’ assessments.
In summary: The drastically lowered expectations by Citigroup and JPMorgan reflect concerns about the U.S. truck market and limited short-term price potential – important hints for investors to evaluate future risks with Knorr-Bremse stocks.