CompuGroup (CGM) had a slow start in 2024. It reported modest revenue growth of 3% yoy on an organic basis (ex- Telematics Infrastructure sales of last year) in Q1 on a high comparable base, while adj. EBITDA was up a mere 1% yoy (margin: +70bps yoy), missing consensus by 4%. Profitability was largely supported by the divestiture of CGM’s Turkish business activities; hence, we view it as low quality. Management reiterated its guidance for 2024, which was reassuring. However, mwb research’s analysts continue to believe that reported margins will remain weak in 2024. That said, the experts acknowledge the market position and long-term prospects of CGM, being a high-quality software company that serves a very resilient and stable customer base in the medical and healthcare market. Given the removal of the mid-term guidance (adj. EBITDA margin ~27% in FY25), the analysts lower their estimates, but given the share price weakness (-45% yoy), they still see upside potential, which is why mwb research reiterates the BUY rating with a further lowered PT of EUR 36.00 (old EUR 42.00). The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

Carl Zeiss Meditec (CZM) reported weak results in Q2 FY24, with revenues and adj. EBIT falling 7% and 13% short of consensus, respectively. Revenues declined 6% yoy, due to unfavorable FX, while it just about stayed flat yoy organically. Continued destocking effects in China impacted both top-line and profitability. Adj. EBIT declined 43% yoy (margin: -6.7ppt yoy to 10.4%) on weak gross margins (-4.5ppt yoy) and adverse operating leverage. Nevertheless, management expects revenues and EBIT to recover, as the destocking exercise is almost complete. It also pointed towards stronger order intake in March and April. CZM has now given a more specific revenue guidance for FY24 at EUR 2.20bn-EUR 2.25bn, including DORC, while reiterating that adj. EBIT should remain at previous year’s levels. While some near headwinds persist, once these constraints and product mix effects subside, CZM's long-term potential and synergies from DORC should come into focus. mwb research’s analysts adjust the estimates for recent results and outlook statement. The analyst changes the PT to EUR 101.00 (old: EUR 110.00), while the rating remains HOLD. The full update can be downloaded under https://www.research-hub.de/companies/Carl%20Zeiss%20Meditec%20AG

Siemens Energy (SE) reported strong set of results in Q2 FY 2024. While revenues were in line with consensus, order intake was 5% ahead and adj. profit line (excluding special items [ex-SI]) of EUR 170m surpassed market expectations of EUR 3m. Grid Technologies (GT) and Gas Services (GS) continued to see strong revenues and profit momentum. SE closed Q2 with a record high order backlog of EUR 119bn (c. 3.8x FY 2023 revenues), following a comfortable book-to-bill ratio of 1.14x in Q2. Encouragingly, the company reported positive FCF (pre-tax) of EUR 483m (vs negative FCF of EUR 283m in Q1) on prudent working capital management. Given its good progress so far this fiscal, management increased its guidance for FY 2024, upgrading revenue growth expectation by a wide margin, tightening its adj. profit margin estimate upwards, now expecting positive FCF of EUR 1.0bn (vs negative c. EUR 1.0bn earlier) and higher proceeds from disposals. Regarding concerns at Gamesa, SE is taking multiple initiatives to tackle quality issues of onshore wind turbines and anticipates a recovery in revenues in H2. Except wind, all other businesses are riding high on favourable demand tailwinds. mwb research revises the price target to EUR 26.00 (from EUR 22.00), incorporating the latest outlook. The stock remains undervalued, and mwb research reiterates the BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Siemens%20Energy%20AG

Metro’s Q2 23/24 sales were in line with consensus. However, adj. EBITDA missed consensus by 19%, due to one-offs and adverse currency impact. Revenues grew 3.9% yoy in constant currencies (c.c.) and 7.2% yoy on a c.c. portfolio adj. basis, led by growth across channels and regions, particularly on strength of its HoReCa business and inflation-led price hikes. However, adjusted (adj.) EBITDA (-34% yoy to EUR 73m) was again weighed down by the expiry of a license fee and transformation costs and the company ended with a net loss of EUR 193m in Q2. Due to persistent cost pressure, strategic investments, and a general uncertain marco environment, management has reiterated its FY 24 outlook. While we acknowledge Metro’s progress in its sCore growth strategy and its steady focus on multichannel HoReCa customers, substantial progress is required to reach its 2030 ambitions and drive forecast increases and a re-rating. We maintain our BUY rating with an unchanged price target of EUR 7.70, as valuations offer attractive entry points. The full update can be downloaded under https://www.research-hub.de/companies/research/Metro%20AG

secunet Security Networks AG increased revenues to EUR 57.6m, an increase of 4% yoy. Main contributions came from the Public Sector segment, which recorded successful business with SINA products. Positive mix effects supported profitability, as gross profit surged by 56% yoy to EUR 6.6m. This corresponds to a gross margin of 12.0%, +4.0pp yoy. OpEx still reflected a high investment level due to product developments. EBIT was negative with EUR -5.6m. While the order backlog increased to EUR 202.7m (Q4 2023: EUR 190.2m), the budget situation in the German public sector seems to be still tense, thus casting uncertainty. Hence, the company confirmed its lacklustre FY24 outlook. Mwb research confirms the PT and rating (EUR 190.00, BUY). The full update can be downloaded under https://www.research-hub.de/companies/secunet%20Security%20Networks%20AG

Siemens Healthineers AG’s (SHL) Q2 24 results were reasonable. Revenues and adj. EBIT missed consensus slightly by 1%-2%, although divisional performance was varied, and adj. EPS of EUR 0.55 was an 8% beat on lower taxes. The top-line grew 3.0% yoy organically (org.) and 11.7% yoy org. ex-antigen business, while the adj. EBIT margin improved by 80bps yoy to 15.1% on cost savings from the Diagnostic segment’s transformation program. However, softness in the Imaging segment (org. revenues: +3% yoy vs +5% yoy in Q1; adj. EBIT margin: -130bps yoy) somewhat disappointed. Nevertheless, management is optimistic of revenues and order bookings at this division recovering in H2, particularly on the back of revival in China. Given its satisfactory progress in H1, management reiterated its FY24 guidance. Overall, the medical technology market is set to recover in FY 24-FY 25 after years of negative impacts, in the view of mwb research. Against this backdrop, stable revenues in the post-pandemic normal gives confidence to the analysts that the company is on track to achieve its long-term targets of mid-to-high single-digits revenue growth and double-digits adj. EPS growth. Mwb research reiterates the BUY rating at an unchanged price target of EUR 62.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Siemens%20Healthineers%20AG

About You (AY) met its guidance, which has been lowered twice in the past quarters. On the top line, revenues increased by 1.6% yoy, slightly above consensus. Margin pressure from discounts and high inventory levels abated, as gross margin improved by 0.8pp to 38.7%. On an adjusted basis, EBITDA was positive for the full year, supported by improvements on all cost lines, mainly in marketing and fulfillment. However, the outlook for FY24/25 in terms of revenue and operating profit was disappointing as it barely touched consensus at the upper end of the range. However, AY provided a mid-term outlook for FY25/26 onwards, targeting “clear” double-digit top line growth and “significant” profitability improvements. The company is confident that it can rekindle growth, but more likely in 2025/26, while 2024/25 will remain challenging. Cutting their short-term estimates, mwb research comes to a new PT of EUR 6.50 (old: EUR 7.00). mwb research confirms the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/ABOUT%20YOU%20Holding%20SE

Mister Spex reported a moderate Q1 in line with expectations. Sales grew by 2% yoy to EUR 51.1m, with a good performance in the domestic market offsetting an 8% decline internationally. Sunglasses grew by 9%, while high margin corrective eyewear declined by 1%, impacting gross margins which fell to 52%. Despite this, operating cash flow improved significantly, reducing cash burn to EUR 5m and leaving EUR 106m in cash on the balance sheet. Management maintains its outlook for FY24, expecting low to mid-single digit sales growth and a low single digit EBITDA margin, supported by the Lean 4 Leverage program. While challenges remain, mwb research believes market share gains and cash management efforts warrants a BUY recommendation, albeit with a slightly adjusted price target of EUR 6.50. The full update can be downloaded under www.research-hub.de/companies/Mister%20Spex%20SE

Following the blockbuster FY 23, Knorr-Bremse published solid 1Q24 results with revenue increasing 3.5% yoy EUR 1.97bn (consensus: EUR 1.94bn), and the order book rising 3.3% yoy to EUR 6.73bn (adjusted for Kiepe Electric). Despite the still-challenging economic market conditions, the total order intake reached EUR 2.1bn (Q1 23: EUR 2.18bn), mainly driven by robust demand in the rail market. In Q1, the Company's operating EBIT margin, net profit, and free cash flow witnessed meaningful improvement due to sales growth, efficient cost measures, and better pricing. Moreover, the Company announced the acquisition of the rail signaling technology business of Alstom Signaling North America on April 19, 2024. With the positive start to the year, the Company has confirmed its FY 24 guidance (excluding the impact of the acquisition of Alstom Signaling North America). mwb research analysts upgrade their margin assumptions and reiterate to BUY with new price target EUR 80.00 (old: EUR 75.00). The full update can be downloaded under https://www.research-hub.de/companies/Knorr%20-%20Bremse%20AG

Bechtle recorded a slight decline in revenues of 2.3% yoy to EUR 1.5bn, but with higher-margin software revenues the company achieved an improvement in gross profit of +4.2% yoy to EUR 277m. With a slightly higher cost base, mainly due to higher personnel costs, EBIT grew less strongly by 3.9% yoy to EUR 84m. At the end of the day EBT also improved by 2.8% to EUR 82m, increasing the EBT margin to 5.5%, which is fully in line with expectations and the full-year target. Management therefore remains optimistic about the outlook, citing the important role of digital transformation and the growing demand for technological advances. The company reaffirms its forecast for significant growth in business volume, revenue, and earnings, which can be translated into revenue growth in the range of 5-10% yoy in 2024 and a stable yoy EBT margin of approx. 5.8%. As Bechtle is one of the leading IT players in Europe and customers from the private and public sectors are still in the early stages of digitization, mwb research continues to believe in Bechtle's growth story. The analyst confirms the PT of EUR 59.00 and the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG