NATO is pushing for higher defense spending, with a new target of at least 3% of GDP according to NATO Secretary-General Mark Rutte —up 50% from current levels. In 2024, EU and Canadian defense investments surged to EUR 462bn, with European NATO members contributing EUR 326bn. Hensoldt has benefited from this trend, securing around 0.7% of European NATO defense spending. However, long-term growth prospects beyond 2030 are uncertain due to reliance on existing platforms and increasing competition. Despite involvement in key programs, Hensoldt lacks transformative growth drivers, with recurring revenues offering only limited support according to the analysts. Given the strong recent stock performance and modest revenue adjustments post-2026, the analysts raise their PT to EUR 45.00 (prev. EUR 43.00) but downgrade Hensoldt to HOLD (from BUY). The full update can be downloaded under https://www.research-hub.de/companies/Hensoldt%20AG.

With NATO raising defense spending targets, Rheinmetall stands to benefit significantly according to mwb research. At the Munich Security Conference, NATO Secretary-General Mark Rutte called for increased defense spending “north of 3%”. European NATO members already increased defense budgets by nearly 20% in 2024, reaching EUR 326bn. Rheinmetall secured ~3% of this spending and is well-positioned for further growth. Rheinmetall’s focus on tanks, ammunition, and drones aligns with NATO's priorities, ensuring long-term demand. Despite short-term volatility, Rheinmetall remains the key player in European defense. Given the improved revenue outlook, the analysts raise their price target to EUR 1,025.00 (prev. EUR 800.00) and reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

Negative market conditions and internal challenges continue to worry TAKKT. Q4 2024 sales were organically (org.) down 11.5% yoy, with reported topline at EUR 254.5m. The pace of decline has somewhat eased, helping curtail the full-year org. decline at 15.4% yoy. Gross and adjusted EBITDA margins were down 3.3ppt and 3.7ppt yoy, respectively, due to diseconomies of scale, destocking at lower prices, and realignment costs. The 2025 outlook is tepid, with a return to revenue growth not expected till the latter part of the year and a slight increase in the adj. EBITDA margin. While TAKKT's robust cash generation, consistent shareholder returns, and the realignment/revamping of the underlying business reinforces its medium-to long- term growth potential, without a strong near-term catalyst, mwb research’s analysts believe it is too early to reenter the stock. Hence, the analysts maintain their HOLD rating with a PT of EUR 8.50. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

United Internet's prelim. FY24 results show stable sales development, with c. 2% yoy increase to EUR 6.33bn, meeting its revenue guidance and mwb research’s expectations. The company added 590K new paid subscriptions across segments, demonstrating strong customer growth. However, unexpected issues with the 1&1 mobile network roll-out, including a temporary outage and undersized components, impacted profitability. Hence, EBITDA fell short of its guidance and arrived at EUR 1.29bn (mbw est. EUR 1.39bn), with Q4 EBITDA margins declining 250bps yoy. Additional depreciation on network investments further weighed on UI’s profitability with EBIT down c. 15% yoy to EBIT 639m. Despite these setbacks, the core business remains sound, with resilient customer demand. mwb research’s analysts reiterate to BUY albeit with lower PT of EUR 23.00 (previously: EUR 25.00), having adjusted their estimates to account for recent challenges, higher financing costs and the expected timeline for resolving network issues. The full update can be downloaded https://www.research-hub.de/companies/United%20Internet%20AG

The European truck market recession in the second half of 2024 posed near-term challenges for suppliers such as MS Industrie, as weak economic growth, high interest rates, and geopolitical uncertainty reduced demand. MS Industrie faced headwinds, particularly in Europe, which accounts for 61% of its sales, but there are signs of a revival in demand. However, long-term contracts with major clients such as Daimler and Traton offer stability. The company's focus on its core business, MS XTEC, ensures high-quality products and long-term growth prospects. Streamlining operations and strong automation investments position the company for low future CAPEX, robust free cash flow, and a solid financial outlook. Political and economic factors, including a potential recovery in Germany, could support a market rebound, creating growth opportunities for MS Industrie in the long term. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 2.40. Join mwb research’s online roundtable with CEO Dr. Andreas Aufschnaiter on Tuesday, February 18. Click here to register: https://research-hub.de/events/registration/2025-02-18-13-30/MSAG-GR. The full update can be downloaded under https://research-hub.de/companies/ms-industrie-ag

Delivery Hero (DH) delivered a strong Q4 24 performance, reaching the upper end of its GMV and revenue targets. GMV grew 8% yoy in constant currency (EUR 12.8bn), while total segment revenue rose 23% to EUR 3.5bn, outperforming consensus estimates. Profitability saw significant improvement, with FY adjusted EBITDA nearly tripling to EUR 750m. Strong growth outside Asia, especially in MENA (revenue +32% yoy), Americas (+25% yoy), and Europe (+24% yoy), further supported this momentum. Looking ahead, DH expects further GMV and revenue growth in 2025, with Free Cash Flow exceeding EUR 200m. mwb research’s analysts reiterate their BUY rating with a revised price target of EUR 49.00 (old: EUR 45.00). The full update can be downloaded under https://www.research-hub.de/companies/Delivery%20Hero%20SE

Carl Zeiss Meditec’s (CZM) Q1 FY25 revenues beat consensus by c. 2%; however, adj. EBITA trailed by 13%. The top-line declined 7.3% yoy organically, due to persistently weak equipment demand, the tepid neurosurgery business, and product cycle-related headwinds, although contribution from the acquired DORC took the reported revenue line to EUR 490.5m, up 3.2% yoy. Adj. EBITA declined 28.0% yoy to EUR 33.1m, with the margin deteriorating 2.9ppt yoy to 6.7%, dragged by an unfavorable product mix and costs related to the DORC consolidation. Management expects macro uncertainties to persist and reiterated its guidance for revenues to grow moderately yoy, with EBITA and the EBITA margin expected to remain stable or slightly higher yoy in FY25. While CZM’s road to recovery appears an uphill one, mwb research’s analysts still view the company as a strategic investment opportunity. Its healthy new model/refresh pipeline, superior market position, and increasing share of recurring revenues should provide its business with resilience. The analysts retain their BUY rating on CZM at an unchanged PT of EUR 65.00. The full update can be downloaded under https://www.research-hub.de/companies/Carl%20Zeiss%20Meditec%20AG

TeamViewer (TMV) closed FY24 with an impressive set of numbers. Revenues of EUR 671m (+9% c.c. yoy) for the full-year exceeded slightly the upper end of its guidance (EUR 662m-668m), reflecting strong momentum in large Enterprise and Frontline deals in Q4, and the adjusted (adj.) EBITDA margin reached its guided 44% (+3ppt yoy), reflecting operational efficiency and scaled down Manchester United (MU) partnership. Following the closure of 1E acquisition on 31 January, management has guided for FY 25 proforma revenues to reach EUR 778m-797m (+5.1% to +7.7% yoy on like-for-like) basis: of which 1E: EUR 81m-85m) and adj. EBITDA margin of c.43% (flat yoy). The FY 26-FY28 targets signal to a more positive revenue trajectory, and the adj. EBITDA margin gradually reverting to 44%-45%. mwb research’s analysts include the FY24 figures, introduce their FY27 estimates and the updated mid-term targets. The analysts reiterate their BUY rating with a slightly higher PT of EUR 15.50 (old EUR 14.80). The full update can be downloaded under https://www.research-hub.de/companies/research/TeamViewer%20AG

Siemens Energy (SE) announced strong Q1 25 results that were in line with its preliminary release. The company reported a robust 17% yoy increase in revenues, driven by Grid Technologies (GT), Siemens Gamesa, and Transformation of Industry (TI). Profit excluding special items (ex-SI) more than doubled yoy, with margin improvements across all segments and narrowing losses at Simens Gamesa. The book-to-bill ratio of 1.53x was highly impressive. Also, robust free cash flow (pre-tax) generation of over EUR 1.5bn during the quarter was encouraging. Following a solid start to the year, management reiterated its guidance for FY 25 and confirmed its medium-term targets. That said, the share price has recently been highly volatile, mainly due to developments in the AI infrastructure and news surrounding it. mwb research’s analysts believe the high expectations are already priced in. mwb research’s analysts slightly adjust their estimate and increase their price target to EUR 50.00 (old: EUR 45.00) but downgrade their rating to SELL from HOLD. The full update can be downloaded under https://www.research-hub.de/companies/Siemens%20Energy%20AG

tk nucera delivered strong Q1 24/25 results (FY ending September 30), with revenue growing by 27%, driven by solid performance in both the Green Hydrogen (AWE) and Chlor-Alkali (CA) segments. EBIT surpassed consensus expectations but was in line with mwb research’s forecasts, reflecting efficient project execution. While order intake declined yoy due to weaker green hydrogen demand, it was slightly above consensus expectations. Management reaffirmed its full-year 24/25 guidance, anticipating growth from the existing order backlog. With a strong pipeline of projects in Oman, the US, and Spain, the company is well-positioned for long-term expansion. Additionally, its solid cash position and continued investments in R&D provide a strong foundation to capitalize on the expected market rebound and future growth in green hydrogen. mwb research’s analysts remain confident in its long-term prospects and reiterate their BUY rating with an unchanged PT of EUR 14.50, based on conservative estimates. The full update can be downloaded under https://www.researchhub.de/companies/thyssenkrupp%20nucera%20AG%20&%20Co%20KGaA