Rheinmetall’s frigate cancellation triggered a 10% selloff in HENSOLDT, although the company’s exposure is minimal, “at less than 1%” of the EUR 12 to 18bn contract value, equivalent to ~50bp of annual sales [mwb est.]. More materially, we expect Saab to supply the radar for TKMS’s A200, the alternative frigate, with no visible HENSOLDT content in public data or the company’s CMD presentations. Competitive pressure is also emerging in air defense, as DIEHL´s IRIS T SLS appears to favor Saab, signaling intensifying competition. HENSOLDT’s growth trajectory depends on whether current procurement volumes can be sustained beyond 2035, which remains unclear. Nevertheless, we upgrade the shares to HOLD, as the recent weakness has brought the valuation more in line with cycle risk. Catalysts, however, remain limited until German government spending decisions materialize. Our price target remains unchanged at EUR 62.00. The full update can be downloaded under https://research-hub.de/companies/hensoldt-ag

During our Industrial Technology conference, Krones’ Head of IR, Olaf Scholz, outlined the group's robust growth strategy and mid-term financial targets. Leveraging a solid FY25 baseline of EUR 5.66bn in sales and a 10.6% EBITDA margin, the company is capturing secular packaging trends and expanding high-margin service revenue via its 6,000-strong global workforce. Furthermore, its intentional shift to reduce German production to 60% by 2028 successfully cushions against tariff risks and geopolitical tensions. With ambitious 2028 guidance targeting sales of around EUR 7.0bn and an EBITDA margin of 11-13%, Krones remains an exceptional industrial pick. We reiterate our BUY recommendation with a PT of EUR 150.00. The full update can be downloaded under https://research-hub.de/companies/krones-ag

Bayer has secured its most important litigation breakthrough since the Monsanto acquisition, with the U.S. Supreme Court ruling in Monsanto v. Durnell directly undermining the warning-based claims that form the vast majority of the Roundup docket. While residual legal and settlement mechanics remain, the decision should sharply reduce verdict volatility, weaken plaintiffs’ leverage and improve visibility on future cash outflows, turning the Roundup overhang from an open-ended liability into a more containable risk. With this de-risking now reinforcing improving operational delivery in Crop Science, Pharma launch momentum and cost restructuring benefits, we see the re-rating case as materially strengthened. We raise our price target to EUR 65.00 from EUR 52.00 and reiterate our BUY rating, reflecting a structurally lower litigation risk profile. The full update can be downloaded under https://research-hub.de/companies/bayer-ag

HEIDELBERG has announced the strategic acquisition of manroland sheetfed’s lifecycle business and global sales and service infrastructure, adding 600 employees and over 3,000 global users. This transaction accelerates HEIDELBERG's high-margin recurring revenue stream by expanding its global service network. It offers substantial cross-selling opportunities in spare sparts, software and consumables, as well future press replacements. Although transaction terms were not disclosed, we view this asset-light consolidation as highly value-accretive, strengthening HEIDELBERG's market leadership. Consequently, we reiterate our BUY rating with a PT of EUR 2.50. The full update can be downloaded under https://research-hub.de/companies/heidelberger-druckmaschinen-ag

SUSS is heading into Q2 with industry momentum clearly moving in its favour. Recent signals from memory chip suppliers point to AI memory tightness persisting beyond 2027, reinforcing demand for HBM-related bonding and debonding tools, while TSMC’s continued CoWoS expansion and ASML’s stronger lithography outlook add further support for SUSS’s UV projection scanner and photomasks businesses. Against this backdrop, we expect another record quarter for order intake of around EUR 180-200m, following EUR 149m in Q1. With SUSS’s mid-term earnings power improving, we raise our PT to EUR 120.00 from EUR 90.00 and upgrade the stock from HOLD to BUY. We are hosting a roundtable with SUSS on 11 August. Please register here: https://research-hub.de/events/registration/2026-08-11-14-00/SMHN-GR The full update can be downloaded under https://research-hub.de/companies/suss-microtec-se

GEA attended our Industrial Technology Conference, where the company reaffirmed medium-term growth momentum while confirming guidance midpoints of ~6% organic growth, 16.9% EBITDA margin, and 36% ROCE. Board conviction is unusually high as seven executives have purchased >EUR 1.4m in shares via open-market transactions. Furthermore, GEA stands as market leader in whey protein extraction equipment and rising protein powder demand could drive incremental capex demand. Capital allocation remains disciplined with EUR 210m dividends confirmed and opportunistic buyback optionality preserved. Taken together, conference validation, insider buying at multi-year highs, and intact guidance with margin delivery potential reinforce our BUY rating at EUR 68.00 PT, with current valuation presenting an attractive entry point. A recording of the presentation and Q&A is available here: research-hub.de/videos The full update can be downloaded under https://research-hub.de/companies/gea-group-ag

Yesterday's 8% drop wrongly assumes RENK shares Rheinmetall's F126 loss. RENK's exposure is limited to a potential ~EUR 20m write-off, offset by potential compensation claims (mwb est.). The market misses that the shift from F126 (RHM:GR) to MEKO A200 (TKMS:GR) is likely better for RENK due to faster delivery & more units, creating a potential EUR 30-40m opportunity. The F126 cancellation is neutral-to-positive for RENK and should not lead to an 8% selloff. Q2 order intake could exceed EUR 500m if Berlin accelerates land systems decisions. If not, the orders should land in Q3. VMS margins should also be solid. We upgrade to BUY (from HOLD) due to the selloff but reduce PT to EUR 50.00 (from EUR 53.00) because we are lowering our 2030 sales assumptions as Rheinmetall's Boxer and Leopard guidance could be too ambitious. The rearmament backdrop and RENK's land systems positioning remain intact. The sell-off created a better entry point. NATO Summit in early July is the next event to watch. The full update can be downloaded under https://research-hub.de/companies/renk-group-ag

The EU’s new breeding regulation introduced in June 2026 marks a structural turning point for agricultural innovation, enabling a new era of advanced plant breeding. By formally allowing New Genomic Techniques (NGTs) such as CRISPR, the EU removes key regulatory bottlenecks and treats precise genome edits more like conventional seeds when no foreign DNA is introduced. This is also a socio-political shift, addressing long-standing GMO concerns while clearly separating modern gene editing from older methods, supporting broader acceptance across Europe. Commercially, the reform accelerates breeding cycles, reduces costs, and speeds up time-to-market for traits such as disease resistance, climate resilience, and efficiency gains. KWS is well positioned due to its non-GMO heritage and strong genome editing expertise, enabling scaling across core portfolios and especially vegetables, strengthening its competitive position versus larger agrochemical peers. We maintain BUY, EUR 95.00 PT, implying ~43% upside and making current levels an attractive entry point after the share drop. The full update can be downloaded under https://research-hub.de/companies/kws-saat-se-co-kgaa

The 20% selloff is in our view an overreaction following the F-126 cancellation. The program represents only 5% of annual sales in our model and the Naval segment is margin dilutive anyway, so losing the frigate contract actually supports group profitability. We have already reset our PT to EUR 1,400 this morning to reflect the guidance impact, and even under our very cautious assumptions the stock trades at multiples among the cheapest in European defense. The current valuation offers an interesting entry point. BUY, PT 1,400. The full update can be downloaded under https://research-hub.de/companies/rheinmetall-ag

Kontron CFO Clemens Billek presented at our virtual Industrial Technology Conference. Management commentary provided useful color on the key investor debates after Q1 and Ennoconn’s mandatory offer. Operationally, the GreenTec cleanup should remove earnings drag and free capacity for Transportation/Rail and Aerospace & Defense. The recent Deutsche Bahn GSM-R disruption further underlines the need for resilient rail communication infrastructure, supporting Kontron’s strong positioning in the migration from GSM-R to FRMCS. We leave estimates unchanged and reiterate BUY with an unchanged EUR 34.00 price target. A recording of the event is available under https://research-hub.de/videos . The full update can be downloaded under https://research-hub.de/companies/kontron-ag