Europe is stepping up defense spending to reduce reliance on the US following the Oval Office discussions on Friday. Rheinmetall is well positioned to benefit, thanks to its scale, leadership in ammunition, tanks, air defense, and drones, and aggressive production expansion. Its fully integrated 155mm production makes it Europe’s lowest cost supplier, with ~25% margins and a ~20% price advantage over competitors. If EU defense spending rises to 3% of GDP, Rheinmetall’s revenues could reach ~EUR 40bn by 2033, with further upside from sector consolidation and Germany’s potential EUR 200bn special defense fund. mwb research’s analysts raise their price target to EUR 1,280.00 (previously EUR 1,115.00) and maintain their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

MS Industrie announced a significant step forward in its off-road diversification, with its subsidiary MS XTEC securing a major contract extension at the beginning of the year. The agreement, effective through 2030 for both Europe and the US, includes an expanded product portfolio and is projected to generate over EUR 100m in business over the next six years. This achievement is especially important as MS Industrie remains largely dependent on the on-road truck market, which contributes 71% of its revenue. The company plans to reduce this dependency to 50% by 2030. With signs of recovery in the on-road market, marked by increasing demand and low truck inventories, growth may surpass expectations. mwb research’s analysts maintain their BUY rating and target price of EUR 2.40, with potential for upward revisions should the recovery gain momentum. The full update can be downloaded under https://research-hub.de/companies/ms-industrie-ag

Viromed provided an update on the progress of its two main products, ViroCAP and PulmoPlas. The classification of ViroCAP as a Class 2a medical device is on track, with certification expected in 2025. The device, which uses Cold Atmospheric Plasma (CAP) technology to treat wounds, has antimicrobial properties that can inactivate viruses, bacteria, germs and spores. Series production of ViroCAP will begin with an initial batch of 1,000 units for dermatology and veterinary medicine, manufactured in partnership with relyon plasma (TDK Electronics). Meanwhile, PulmoPlas, designed to prevent and treat ventilator-associated pneumonia (VAP) in intensive care, is also progressing as expected. A study led by Prof. Hortense Slevogt is expected to be completed in Q2 2025, after which Viromed plans to apply for special approval from the German Federal Institute for Drugs and Medical Devices in Q3 2025. Given the strong commercialization prospects of Viromed’s CAP technology, mwb research’s analysts reiterate their Spec. BUY rating with a target price of EUR 6.90. The full update can be downloaded under https://www.research-hub.de/companies/Viromed%20Medical%20AG

KION reported detailed Q4 and FY 24 numbers that were in line with the preliminary release. Management sees FY 25 as a “look-through” year for Industrial Trucks & Services (IT&S), with slightly improving new truck volumes, anticipating a slowdown in EMEA, a stable growth rate in APAC, and a recovery in the Americas. For the Supply Chain Solutions (SCS) business, it estimates better profitability on tapering legacy projects and better execution. For FY 25, Kion guides for group revenues to come in at c.EUR 10.9bn-11.7bn (-5% to +2% yoy) and adj. EBIT of EUR 720m-870m (-21% to -5% yoy) with lower adj. EBIT at IT&S, partly offset by higher results from SCS. It also confirmed its efficiency programme, which is expected to result in annual cost savings of EUR 140m-160m from FY 26 onwards. This should somewhat counter the negative sentiment around sluggish European demand and increasing Chinese competition. mwb research’s analysts only finetune their estimates and maintain their PT at EUR 46.00. The analysts confirm their BUY rating on the stock. The full update can be downloaded under https://www.research-hub.de/companies/Kion%20Group%20AG

Beiersdorf reported organic sales growth of 6.3% yoy in Q4 24 vs consensus of +6.7%, registering an 8.2% yoy org. increase in the consumer segment, partly offset by a 2.0% yoy org. drop at tesa. For the full year, the company reported org. sales growth of 6.5% yoy (cons. +6.6%) and adj. EBIT of EUR 1.37bn (in line) – corresponding to a margin of 13.9% (in line; +50bps yoy) – all meeting management guidance. In FY25, Beiersdorf expects to achieve above-market top-line growth and is guiding for group org. sales growth of 4-6% yoy and the adj. EBIT margin to be slightly higher yoy. While these numbers were a tad lower than cons. of 5.6% yoy and 14.3%, respectively, they are still reassuring, given the planned inventory adjustments in China ahead of the Thiamidol launch. mwb research’s analysts continue to view Beiersdorf as an attractive play in the global skin care market, given its brand strength, steady market share expansion, and the successful rollout of innovations such as the Epicelline® anti-aging serum and its recent resilient performance. The analysts see better profit momentum beyond FY26 and increase their PT to EUR 146.00 (old: EUR: 143.00). mwb research reiterates its BUY rating on the stock. The full update can be downloaded under https://www.research-hub.de/companies/Beiersdorf%20AG

Scout24 SE continued to witness healthy business momentum in Q4 2024, with both revenue and ordinary operating (op.) EBITDA coming broadly in line with consensus at EUR 147m (+11% yoy) and EUR 91m (+15% yoy), respectively. Reported revenue benefitted from a record high subscription base and the resultant acceleration in subscription revenue. On the other hand, op. EBITDA growth was largely supported by operating leverage and the successful execution of a streamlining/interconnectivity strategy. The business remains highly cash generative, returning EUR 24m in Q4 2024 (+12% qoq) to shareholders in buy-backs despite acquiring neubau kompass in November. Scout24 expects the strong momentum to continue into FY 2025, with double-digit revenue growth of 12%-14% yoy and up to a 50bps yoy improvement in the op. EBITDA margin. Moreover, its medium-term growth target remains promising and on track. mwb research’s analysts reiterate their HOLD rating at a revised PT of EUR 88.00 (old: EUR 81.00). The full update can be downloaded under https://www.research-hub.de/companies/research/Scout24%20SE

Hensoldt delivered solid FY24 prelim. results, with strong profitability and cash flow offsetting a slight analyst revenue miss. Growth was largely driven by the ESG acquisition, while organic growth was 9%. The 2025 guidance came in slightly below expectations, and the ambitious EUR 5bn revenue target by 2030 looks increasingly challenging given Hensoldt’s niche position and rising competition from larger players. mwb research’s analysts lower their short-term revenue estimates, raise their mid-term estimates due to favorable industry dynamics, but long-term visibility remains limited due to platform reliance and uncertain order flow. Given the strong recent stock performance and modest revenue adjustments, the analysts raise their PT to EUR 48.00 (prev. EUR 45.00) but maintain Hensoldt at HOLD. The full update can be downloaded under https://www.research-hub.de/companies/Hensoldt%20AG

Enapter announced its preliminary FY24 results, with revenue and EBITDA generally in line with expectations. Despite the challenges in the hydrogen market, the company reported strong demand for its advanced AEM technology, outperforming competitors using PEM. The second-half FY24 revenue decline was mainly due to a one-off payment from a US deal in the prior year, while organic growth remained positive. The expanding order backlog provides a solid basis for our revised FY25 revenue estimates, which now seem more secure. However, given the results, weaker-than-expected FY25 guidance, and ongoing market uncertainties, mwb research’s analysts have adjusted their revenue and EBITDA forecasts. As a result, the analysts have reduced their PT to EUR 7.00 based on more conservative estimates and changed their rating from BUY to Spec. BUY, reflecting the continuing uncertainty in the hydrogen market and Enapter’s relatively high debt burden. The full update can be downloaded under https://www.research-hub.de/companies/Enapter%20AG

AUTO1 Group delivered a strong Q4 2024, creating multiple all-time highs and beating consensus by a substantial margin. Q4 sales volume was at a record high of 183k units (+25% yoy and 7% above consensus) and drove a strong 28% yoy growth in revenues to EUR 1.7bn (a 11% beat). Gross profit and gross profit per unit (GPU) of EUR 201m and EUR 1,096 (+19% yoy) were ahead of consensus by 15% and 6%, respectively. Moreover, adj. EBITDA of EUR 37m settled at a new best and came in at thrice the consensus estimate. The momentum is expected to continue, with AI-driven pricing and the fast-growing financing arm acting as catalysts for growth. In FY25, AUTO1 expects to sell 735k-795k units, with gross profit and adj. EBITDA of EUR 800m-875m and EUR 135m-165m, respectively, corresponding to mid-point growth rates of 11%, 16% and 37% yoy. mwb research’s analysts adjust their model for recent results and FY25 guidance and confirm their BUY rating at a higher PT of EUR 25.00 (old: EUR 19.00). The full update can be downloaded under https://www.research-hub.de/companies/AUTO1%20GROUP%20SE

Nordex announced its Q4 24 results, reporting a 9% yoy revenue increase to EUR 2.2bn, slightly below expectations but above consensus. The EBITDA margin remained solid at 4.9%, surpassing both consensus and mwb research’s estimates. For FY24, Nordex achieved a 12.5% revenue growth and an EBITDA margin of 4.1%, along with strong free cash flow of EUR 271m, marking a significant recovery from previous years of negative cash flow. The company reported a record-high order intake, including EUR 1.8bn in the service segment, which more than doubled yoy (+114% yoy). Looking to FY25, Nordex expects moderate growth and aims to reach its medium-term EBITDA margin target of 8%. mwb research’s analysts maintain their BUY rating and EUR 20.00 target price, reflecting an improved margin outlook but revised revenue growth expectations. The full update can be downloaded under https://www.research-hub.de/companies/Nordex%20SE.