HENSOLDT has outperformed the sector by ~26pp over 10 days despite the same cycle exposure that triggered a sector-wide selloff after Rheinmetall's earnings call. The outperformance is not justified by fundamentals in our view. Armoured vehicles are a core revenue driver but are the least-favoured spending category of the current conflict environment in Ukraine where drones are preferred. Hensoldt is perceived as a software-defined defense supplier, but with software accounting for only 8% of sales in FY30E, that perception does not look justified. Meanwhile, HENSOLDT trades at ~40x 2027E P/E versus Rheinmetall's ~22x on nearly double the top-line growth and same margins/ CCR ratios. Our DCF and peer-based analysis both point to a fair value of EUR 58.00-62.00. The stock is priced for a transformation that is, at best, still a decade away. SELL. The full update can be downloaded under https://research-hub.de/companies/hensoldt-ag

Südzucker (SZU) reported FY26 results broadly in line with prelims, confirming a difficult year with continued pressure on earnings, driven primarily by Sugar. CropEnergies provided a partial offset with improving profitability on lower input costs and a more supportive biofuels backdrop, while Special Products and Starch weakened and Fruit remained resilient, underscoring the value of diversification. Despite weaker earnings, operating cash flow remained positive, supported by working capital effects. Looking ahead, SZU expects a strong yoy rebound in Q1 FY27 EBITDA, marking the first clear signs of recovery. This should be driven by a stronger cost base and improving biofuels dynamics, while a sustainable turnaround ultimately depends on a recovery in sugar pricing. FY26 likely represented a cyclical trough, with improving conditions now setting the stage for gradual recovery. We reiterate our BUY rating and EUR 15.00 PT. The full update can be downloaded under https://research-hub.de/companies/suedzucker-ag

SBO’s Q1 results confirmed a trough-like earnings level, with sales broadly stable qoq but margins still under pressure from low Precision Technology utilization, Middle East-related logistics constraints, Houston ramp-up costs and FX headwinds. The key positive was order intake, which rose 18.5% qoq to EUR 117.6m, implying a book-to-bill ratio of 1.2x and supporting the H2 recovery case. We lower our 2026E EBITDA and EBIT by c. EUR 5–6m to reflect stronger transition-year margin pressure. However, improving bookings, intact mid-term energy-security drivers and recent share price weakness improve the risk/reward. We upgrade from HOLD to BUY, PT unchanged at EUR 39.00. The full update can be downloaded under https://research-hub.de/companies/sbo-ag

Multitude reported a soft Q1 26, with revenue down 7.8% yoy to EUR 61.6m and net profit declining 39.4% yoy to EUR 4.4m, mainly due to lower net interest income. However, results were in line with our expectations and reflected planned FY26 phasing. Asset quality continued to improve, with impairments down 18.8% yoy, while net loans and investments rose 23.5% yoy. Segment trends confirm a shift toward diversification, with Consumer Banking weaker, SME Banking still investing, and Wholesale Banking scaling profitably. Management confirmed the FY26 guidance. With no changes to our estimates, we remain BUY with an unchanged price target of EUR 14.40. The full update can be downloaded under https://research-hub.de/companies/multitude-ag

MS Industrie CEO Dr. Andreas Aufschnaiter presented FY25 and Q1 26 at yesterday’s earnings call, highlighting a clear shift from investment to execution. FY25 was a transition year, but Q1 2026 already showed improving revenue, gross margin, EBITDA and EBIT despite US ramp-up costs. The now fully-owned Trossingen site, automated machining platform, and long-standing single-source customer relationships provide a solid underlying for margin recovery. The US site in Charlotte adds a new growth driver, supported by orders for engines used in data-centre power generation. Diversification into data-centre infrastructure, defense, aerospace and selected industrial applications should improve revenue quality, with the potential to resume dividends from 2027. While the truck market remains fragile, ageing European fleets should support demand over time. We confirm our BUY rating with a PT of EUR 2.20. The recording is available here: https://research-hub.de/events/video/2026-05-20-14-00/MSAG-GR The full update can be downloaded under https://research-hub.de/companies/ms-industrie-ag

The German federal cabinet’s approval of the draft legislation marks another key step toward the planned driver education reform, with implementation still targeted for January 1, 2027. 123fahrschule (123fs) intends to fully shift theory education to E-Learning and has already terminated around half of its rental contracts, creating potential annual cost relief of c. EUR 0.60m before one-offs. While expansion into new metropolitan areas should partly reverse the rent trend, future sites should be more profitable through simulator use and scale effects. Foerst’s new simulator version and AI driving instructor could further strengthen the group’s positioning. We confirm BUY with an unchanged PT of EUR 5.20. The full update can be downloaded under https://research-hub.de/companies/123fahrschule-se

KNDS sold a ~5.8% Renk stake via accelerated bookbuild at EUR 44.95, raising EUR 269m and trimming its holding from 15.83% to 10%. The official rationale (balance sheet reinforcement ahead of the KNDS IPO) raises more questions than it answers. With a solid backlog and order intake leading to advaned payments, KNDS does not need the money. Three questions remain unanswered. Why was the German government, a natural buyer for a critical Leopard 2 supply chain asset, apparently passed over? Why does a “convinced long-term shareholder” cut a position by more than a third? And does this signal that KNDS is stepping back from land systems as its core growth vector? The Renk investment case is however unchanged and we await the KNDS IPO for more information’s regarding the future of tracked vehicles. We reiterate BUY with a EUR 53.00 PT. The full update can be downloaded under https://research-hub.de/companies/renk-group-ag

Airbus is caught in a credibility squeeze as the company publicly maintains its 870-delivery guidance while reportedly freezing 10% of non-industrial spending. The combination is difficult to reconcile. Our proprietary Q2 tracking shows a monthly run rate of 42 deliveries as of mid-May, against a required pace of 97 deliveries per month for the rest of the year to hit the delivery target. A formal guidance cut to around 840 is, in our view, a matter of when, not if. The supply driven delivery shortfall should normalize into 2027, but the margin story remains structurally difficult, with Reuters reporting that Airbus is enforcing a 10% spending reduction, pointing to ongoing cost pressure. While the stock is down 15% ytd, we still see limited near term upside given execution risk and margin pressure. HOLD, PT EUR 170.00. The full update can be downloaded under https://research-hub.de/companies/airbus-se

Gevorkyan has reported Q1 figures with solid operational momentum. Total revenue increased by 12.5% yoy, propelled by a 17.5% yoy surge in own product sales. EBITDA increased slightly less than proportional with a 40bps margin compression. However, thanks to flat D&A expenses, EBIT surged 24% yoy, demonstrating powerful operating leverage. Strategically, the recent Italian manufacturing acquisition acts as a major commercial catalyst, fast-tracking vendor status with defense giants like Rheinmetall and Leonardo. The company is in advanced talks for a defense joint venture in Poland with a potential Warsaw listing. Backed by confirmed FY26 and mid-term targets, the structural growth story remains fully intact. We confirm our BUY rating with price target EUR 12.80. The full update can be downloaded under https://research-hub.de/companies/gevorkyan-as

HEIDELBERG’s FY25/26 and isolated Q4 results illustrate a stark divergence between stabilizing orders and severe near-term margin pressure. While full-year sales held steady at EUR 2.29bn, a 10% drop in Q4 revenue combined with unfavorable product mix and upfront defense investments crushed the Q4 adjusted EBITDA margin to 5.4%. This operational downswing dragged full-year free cash flow down to EUR -19m and left Q4 net income slightly negative at EUR -2m. Nevertheless, a stabilizing Q4 order intake (+1% yoy to EUR 619m) and an improved equity ratio of 27.2% validate the long-term self-help thesis. Backed by extensive liquidity and mid-term restructuring cost reliefs, we reiterate our BUY rating with a PT of EUR 2.60. A detailed management guidance will be provided on June 10. The full update can be downloaded under https://research-hub.de/companies/heidelberger-druckmaschinen-ag