Investors have started positioning for an expected
recovery in short-cycle industrial markets, but as is typically the
case, it has left some names overvalued and others overlooked. Germany’s
Jungheinrich (OTC:JGHAF)
(JUN3.XE) isn’t going to be the easiest stock for some investors to own
or follow, but for those who can, it’s a name worth considering as a
nearly pure play on improving economic metrics in Europe over the next
few quarters.
To be clear, I look at Jungheinrich as
more of a trade than a long-term buy at these levels. Discounted cash
flow suggests a return potential on par with other quality industrials,
but the shares look undervalued on an EV/EBITDA basis and the company’s
strong historical past leverage to economic upswings is the real
near-term attraction here.
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Jungheinrich Could Still Do Some Heavy Lifting
