Short > 44.3 , target 42.75 , stop 45.65

Today GS is upgrading from Sell to Buy with a €50 12m PT (was €38). Post strong performance from 2009-14, when China construction (KONE’s main market, c.25% of sales) boomed, it has underperformed the sector (c.-34pp, 2015-present). They now expect this to reverse, as China to turn into a tailwind in 2018/19 and CROCI acceleration on China volume & cost savings.

Our quant robot respectfully disagrees and we recommend fading “pump up the jam” GS by shorting the stock above 44.3