K+N hosted its CMD alongside its 2022 results call and presented its Roadmap 2026. The key takeaways from the Roadmap are a conversion rate of 25-30% by 2026 and an EBIT CAGR of 17-19% between 2019-2026. The former is materially higher than the group’s 2022 target of 16% and the latter would imply an EBIT of CHF3.0-3.4bn in 2026, offering significant upside from the current consensus estimate of CHF2.14bn. We take a cautiously optimistic view but could be positively surprised.
