UBS believes that sales were higher in Q4 and notes an improvement in exchange rates, but underlying trends are still weak. The analyst remains neutral on the stock with an unchanged target of E107, which represents a potential upside of 17%.

Fourth-quarter sales exceeded expectations. However, underlying trends remain weak in the US and China, with all eyes on the outlook for fiscal 2025.

A cautious near-term outlook for the US and China suggests that sharp organic revenue declines could persist in the first half, and that operating leverage could be challenging in fiscal 2025, adds UBS.

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