Last week Formycon presented at the AlsterResearch Health Care Conference, for which a recording can be watched at https://research-hub.de/events. Yesterday evening, Formycon announced the raising of EUR 82.84m in fresh funds from Gedeon Richter Plc, a Budapest-based company active in pharmaceutical manufacturing, research and development, sales and marketing. Richter will hold around 9% of Formycon. The proceeds will be used for further development of the biosimilar pipeline, including the start of a further biosimilar candidate, FYB210, in H2 2024. AlsterResearch sees the increased willingness to make strategic investments as evidence of Formycon's operational progress and the successful implementation of its strategy to date. AlsterResearch’s analysts include the capital increase in their model and adjust the price target to EUR 91.00 (old: EUR 100.00) as a result of the higher number of shares. AlsterResearch confirms the BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

Westwing reported preliminary Q4 figures with a 4% yoy growth in GMV, driven by a 5% increase in average basket size. This continues the positive trend from Q3, stabilizing the GMV for FY23. The company expects its EBITDA to be in the upper half of the guided range, with positive free cash flow for both Q4 and FY23. Cost-cutting measures and the growing share of the "Westwing Collection" are improving performance and supporting margins. Despite still challenging market conditions, Westwing has returned to a growth trajectory. We confirm our price target of EUR 10.00 and a BUY rating. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20AG

Mister Spex is anticipated to report decent Q4/FY23 results following a lackluster Q3. Sales growth is expected to rebound by around 8% yoy to EUR 47-48m, aligning with the company's mid-single digit full-year guidance. Positive trends in adjusted EBITDA are predicted to continue, reaching EUR 0.2m in Q4 and totaling around EUR 1.1-1.2m for FY23, consistent with the low single-digit margin guidance. Despite the seasonally negative cash flow in Q4, Mister Spex is projected to maintain a strong cash position, with a year-end balance likely at the upper end of the EUR 105-110m guidance range. In terms of news flow, the appointment of a new CFO, Stephan Schulz-Gohritz, brings seasoned leadership to the team, which AlsterResearch believes could provide additional tailwind to become cash flow positive. Looking ahead, Mister Spex is likely to aim for profitable growth and cash flow preservation in FY24. AlsterResearch reiterates its BUY rating with unchanged PT of EUR 7.30. The full update can be downloaded under www.research-hub.de/companies/Mister%20Spex%20SE

Sartorius released its preliminary 2023 numbers with no surprises. As expected by AlsterResearch, the Q4 print was impacted by the absence of the COVID-19 business and continued stock optimization by customers. Order intake continues to gradually recover on a more normalized base. Management expects to achieve mid- to high-single-digit yoy growth in revenues and above 30% EBITDA margin in 2024. Sartorius is also targeting a revenue CAGR in the low teens (including M&A activities) over 2024-28 and EBITDA margin of c. 34% by 2028, which confirms the analyst’s assumptions. While management is optimistic on returning to profitable growth, AlsterResearch would like to adopt a wait and watch strategy on the pace of recovery over the next few years. The experts see growth more in line with the medical market (8-9%), instead of historic growth rates in the teens. Given this view, AlsterResearch believes that Sartorius’ high valuation multiples appear stretched and reiterate the SELL rating at an unchanged target price of EUR 235.00. The full update can be downloaded under research-hub.de/companies/Sartorius%20AG

Sales and earnings for 2023 below expectations, forecasts and price target reduced, BUY rating confirmed   According to preliminary figures for the past financial year, Avemio AG suffered a decline in sales to around € 103 million (previous year: € 108.7 million), contrary to previously communicated expectations. The company had pr [ … ]

Wacker Chemie reported preliminary Q4 figures with revenues down 24% yoy, below expectations. Polysilicon saw the sharpest decline due to lower solar volumes and prices, while the small Biosolutions division was the only unit to post growth. EBITDA in Q4 was in line with Q3 and broadly in line with expectations, but the margin halved compared to last year due to continued low capacity utilization, an unfavorable mix, still high material costs and pressure on selected prices. Despite the weak outlook and challenging environment in the chemical industry, Wacker Chemie has continued to invest heavily, signaling that it is preparing for a future upturn in demand. However, CEO Christian Hartel has noted a lack of signs of a recovery in demand, suggesting continued difficulties until at least Q1 2024. Wacker Chemie's recent underperformance (-38% from 52-week high) suggests that this could be an opportunity for investors looking beyond the next few quarters. AlsterResearch reiterates its BUY recommendation with an unchanged price target of EUR 135.00. The full update can be downloaded under https://www.research-hub.de/companies/Wacker%20Chemie%20AG

Krones has announced its acquisition of Swiss-based Netstal Maschinen AG, a supplier of injection molding machines for the beverage, medical, and thin-wall packaging markets, for EUR 170m. Currently owned by KraussMaffei (itself under Chem China), Netstal's sales exceed EUR 200m, constituting 4% of Krones' annual sales. Despite a higher acquisition multiple of 15-16x EV/EBITDA compared to Krones' ~7.5x, the strategic benefits justify the cost. Netstal complements Krones' beverage market portfolio, offering PET closed-loop solutions. Synergy potential is expected through international positioning and economies of scale, aiming to improve Netstal's margins. This move aligns with Krones' diversification strategy and strengthens its position as a leading filling and packaging machinery provider. The transaction is set for early Feb ‘24, pending antitrust clearance. AlsterResearch reiterates BUY, with unchanged price target of EUR 129.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Krones%20AG

AlsterResearch initiates the coverage of Rigsave S.p.A. with a BUY recommendation and a PT of EUR 19.50 offering an upside potential of 62.5%. Rigsave is a well-established and respected financial services provider and asset manager with a strong reputation for its expertise and professionalism. The company is committed to building long-term relationships with its clients, which is proved by a significant increase in assets under management since its foundation in 2015. Rigsave is an innovative financial services company that generates returns for its partners, customers, and investors with active, sustainable and digital investment solutions. Its business model is based on a platform structure, which should further help the company to grow organically. The full update can be downloaded under https://www.research-hub.de/companies/Rigsave%20S.p.A.

Swiss Estates has seen a strong 30% increase in its share price since AlsterResearch’s coverage initiation in October. Unlike Euro zone counterparts grappling with uncertain interest rates, Swiss Estates, focusing on Swiss residential real estate, benefits from a unique market environment. Factors like Switzerland's 1.75% key interest rate, lower financing costs, an underinvested housing stock, and falling vacancy rates contribute to its advantageous position. Recent success in leasing a St. Gallen residential complex underscores the positive impact, with Swiss Estates expecting a 12% yoy increase in net rental income in 2024. Despite recent share price growth, the stock offers significant upside potential, supported by an 11% dividend yield and a significant discount to NAV of >80%, leading AlsterResearch to reiterate their BUY rating with an unchanged PT of CHF 7.70. The full update can be downloaded under https://www.research-hub.de/companies/Swiss%20Estates%20AG

Photon Energy has sold part of its PV project development rights in Poland to INWE Group, a Polish investment company focused on the renewable energy and housing markets. This sale is a small step financially, but opens up the potential for larger transactions in the future - discussions are underway for a larger sales volume. The transaction demonstrates the flexibility of Photon Energy's business model: As the achievable return on PV assets declines and financing conditions become more restrictive, it becomes more attractive for Photon Energy to provide PV services rather than use its own balance sheet to build capacity. AlsterResearch’s analysts reiterate their BUY recommendation with unchanged estimates and a price target of EUR 3.20. The full update can be downloaded under https://www.research-hub.de/companies/Photon%20Energy%20NV