BASF faces challenges in FY23/Q4 with weaker-than-expected results due to reduced demand and increased costs, influenced by a global economic downturn and rising energy prices related to the war in Ukraine. FY23 sales of EUR 68.9bn fell 20% yoy and hence below consensus and AlsterResearch forecasts. Q4 results (-9% yoy), however, indicate a slower contraction, raising optimism for a return to growth in FY24. EBIT before special items dropped 45% to EUR 3.8bn, missing targets and consensus estimates. BASF plans to cut costs further, focusing on Europe, after already reducing capex. Despite improved operating cash flows (EUR 8.1bn), FY23 profitability at EUR 225m falls short of expectations. Strategic moves, including subsidiary sales, aim to alleviate financial pressures. Despite challenges, AlsterResearch’s analysts maintain their BUY rating with unchanged PT of EUR 58.50, anticipating potential growth in FY24E. The full update can be downloaded under https://www.research-hub.de/companies/BASF%20SE

Kontron has agreed to acquire a 60% stake in Katek SE, a European electronics company specializing in solar energy and e-mobility, for approx. EUR 217m. The deal is set to be completed by March ‘24, with Kontron planning a mandatory bid for the remaining shares thereafter. The acquisition aligns with Kontron's strategy to expand its product portfolio, integrating Katek's expertise in renewable energy solutions. The move is expected to enhance Kontron's IoT capabilities and contribute to mid-term gross margin expansion by approx. 5pp. Despite the deal being considered only slightly value accretive (pre-synergies), the consensus price target for Katek suggests its fundamental value considerably surpasses the acquisition cost. Following the transaction, Kontron has raised its FY24 outlook, anticipating consolidated sales of at least EUR 1.9bn and a net profit of around EUR 100m. The acquisition represents the final stage of Kontron's M&A strategy, initiated in ‘22. AlsterResearch’s analysts maintain their BUY rating with unchanged PT of EUR 34.00, representing a potential upside of c. 50%. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

Strategic acquisition to improve profitability; chg Yesterday, Netfonds announced to have acquired a majority stake in “Meine Finanzkanzlei GmbH” (“MFK”) through its fully owned subsidiary NVS Netfonds Versicherungsservice AG. In detail: We assume that Netfonds has acquired a stake of 65-85% (eNuW) at a low to mid, sin [ … ]

FY’24 guidance out – solid outlook for the year Topic: FWAG released its FY ’24 guidance, indicating a solid outlook for the year. Moreover, Dec ’23 traffic results came in slightly better than expected. Guidance in line with estimates: FWAG expects c. € 970m sales (eNuW: € 965m), at least € 390m EBITDA  [ … ]

Siemens Healthineers (SHL) predicted a solid development at the end of last year and one of its main competitors, GE Healthcare, has now also indicated that market conditions are likely to be better than last year. This is in line with previous statements from SHL and confirms that the generally robust medical imaging sector expects to recover. In addition, SHL should benefit from tailwinds due to easing inflation, which should allow for margin improvements this year, and which should mark the beginning of a multi-year EPS improvement. Management’s long-term guidance is expected to be viewed positively by investors, as soon as first results indicate the “direction of travel”. AlsterResearch believes, SHL is well placed to benefit from structural megatrends in its industry, which is why the analysts reiterate the BUY rating with a PT of EUR 60.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Siemens%20Healthineers%20AG

Market penetration of FYB201 seems to have finally gained more momentum as Formycon AG has provided a positive update. Based on preliminary data, Coherus has sold approx. 190k doses of Cimerli per end of 2023, doubling its shipped doses since October. The market share among ranibizumab class drugs improved from 29% in August 2023 to 38% in December 2023. Additionally, Formycon highlighted figures for the UK market, boasting a 69% market share in November 2023. However, this must be seen in the context of a relatively slow start, which prompted Formycon to adjust its own forecasts downwards in November. AlsterResearch confirms the PT of EUR 100.00 and BUY rating and believes that the recent share price weakness could mark an attractive entry opportunity. Please note: Formycon will present at the AlsterResearch Healthcare Pop-Up Conference on January 23, 2023. Register under https://research-hub.de/events. The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

Wolftank's recent virtual CMD focused on the growth prospects of the hydrogen sector, highlighting significant opportunities despite recent investor negligence. The company is well positioned for future growth, leveraging its extensive experience in vehicle refueling and hydrogen expertise. Key drivers include the availability of surplus electricity, broad-based price declines in hydrogen energy production and hence the EU's ambitious plan to establish a comprehensive hydrogen refueling infrastructure by 2030. The expected price declines are likely to make green hydrogen competitive, and the growing adoption of hydrogen-powered vehicles adds to the sector's potential. Wolftank's performance in 2023 showed the first signs of significant growth, which AlsterResearch’s analysts merely view as the tip of the iceberg. The experts therefore reiterate their BUY rating with unchanged PT of EUR 22.00, reflecting ongoing confidence in Wolftank's position and potential. The full update can be downloaded under https://www.research-hub.de/companies/Wolftank-Adisa%20Holding%20AG

MAX lays the foundation for outperformance in 2024 Topic: MAX Automation has another promising year in front of it. We expect the company to grow its topline by 7% in 2024e while sustaining last year’s profitability (eNuW). Topline growth ahead: With several structural trends kicking in, MAX should be able to grow its revenue in the cur [ … ]

In the past weeks, Puma’s share price has come under pressure amid reports from industry peers, pushing the stock towards its 52-week low. While competitor Nike pointed to a weak wholesale business in North America, sports fashion retailer JD Sports also emphasized a discount-intensive Christmas business. Given Puma’s earlier Q4 outlook, AlsterResearch’s analysts see the risks already factored in the company’s guidance. For FY24, AlsterResearch continues to expect a pick-up of momentum in the context of the upcoming sporting events (e.g., Olympics, European Football Championship). AlsterResearch’s analysts see the price weakness of recent weeks as a favourable buying opportunity and reiterate their PT and rating (BUY, EUR 75.00). The full update can be downloaded www.research-hub.de/companies/research/Puma%20SE

Nordex continues to make progress and announced a 16% yoy increase in order intake to 7.4 GW in FY23 (eAR: revenues EUR 6.2bn without service contracts) at an average selling price of EUR 0.84m per MW (FY22: EUR 0.84m per MW). These developments underscore Nordex's resilience and point to promising prospects, especially as more orders are coming from northern countries such as Germany, Sweden, etc., which should further increase average selling prices and thus margins in the future. At Group level, the average selling price per MW rose again in Q4 23 to EUR 0.84m (Q3 23: EUR 0.79m) because of the improved regional mix. In addition, the revival of business in the US should contribute to Nordex's strong overall growth. AlsterResearch’s analysts reiterate their BUY recommendation with unchanged PT of EUR 22.00. The full update can be downloaded under https://www.research-hub.de/companies/Nordex%20SE.