Colt CZ Group Benefits From Expanding Demand For Ammunition
Source: SeekingAlpha
2025-04-20 02:46:39 ET
Summary
- Upgraded Colt CZ Group SE to "buy" in January; stock gained 12.1% while the S&P 500 lost 12.2%, reflecting strong performance despite market challenges.
- Colt CZ Group specializes in small arms and ammunition, expanding through acquisitions like swissAA and Sellier & Bellot, aiming to lead the market.
- Risks include tough US market conditions, forex exposure, and potential shareholder dilution for acquisitions; organic profits were flat due to unfavorable market mix.
- Updated price target to $38.84, driven by higher EV/EBITDA multiple and better cash flow expectations for 2025; remains attractive but mindful of risks.
In January, I upgraded Colt CZ Group SE ( CZGZF ) from hold to buy. The OTC listing gained 12.1% since then, while the S&P 500 lost 12.2%. Since the OTC listed ticker tends to have low volumes, which can lead to discrepancies between the OTC ticker and the price development of the underlying instrument, it is also important to consider the stock price development of the COLTCZ ticker at the Prague Stock Exchange. The stock price did increase 13.5% but declined sharply following the company’s announcement of 2024 preliminary results and are now flat....
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Colt CZ Group Benefits From Expanding Demand For Ammunition
Colt CZ Group SE
NASDAQ: CZGZF
CZGZF Trading
-3.19% G/L:
$43.85 Last:
175 Volume:
$43.85 Open:
