tonies SE will announce its Q3 sales on 13 November, with growth expected around 22% yoy despite strong comparables. This would bring cumulative growth for the first nine months to around 26%, slightly below the company's full-year guidance of at least 33%. In the mature DACH region, growth is expected to slow to around 2% yoy in Q3 as consumer confidence remains low, particularly in Germany. In contrast, the Rest of the World (RoW) segment is forecast to perform strongly, with expected yoy growth of 65%, driven by increased penetration in France and new markets such as Australia and New Zealand. In the US, growth should reach a respectable 35% yoy despite high comparables due to significant prior year sell-in at Walmart and Target. Overall, Q3 should support tonies’ growth story and mwb research’s BUY recommendation. Head of IR Manuel Bösing will provide further insights at the mwb research German Select online conference on 3 December, interested investors are invited to register here: https://research-hub.de/events/registration/2024-12-03-10-30/TNIE-GR. The full update can be downloaded under https://www.research-hub.de/companies/tonies%20SE

TAKKT reported detailed Q3 2024 results that were in line with its tepid preliminary numbers. Organic (org.) sales decreased by 14% yoy to EUR 269m in Q3, while EBITDA declined 32% yoy to EUR 20.5m, due to one-time costs. Adjusted for one-time charges, the adj. EBITDA margin deteriorated 70bps yoy to 9.0%. TAKKT is facing several challenges, including a weaker-than-expected seasonal upturn in incoming orders since September, a difficult market environment, and ongoing internal challenges. As a result, TAKKT had revised its FY24 guidance downwards during prelims, which it confirmed. It now guides org. sales decline of -15% to -17% yoy and an adj. EBITDA margin of 6.3%- 7.1%. One-off costs are likely to be higher than originally expected at c. EUR 15-20m. TAKKT is balancing cost management with investments in growth and processes. While this may have a negative impact on Q4 profitability, the company expects FCF to remain relatively stable, owing to reduced net w/c. The analysts retain their estimates that were adjusted following the Q3 prelims and maintain their HOLD rating at an unchanged PT of EUR 9.50. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Stratec reported detailed Q3 2024 results that were in line with its preliminary release. Sales during the quarter declined by 9% yoy, mainly due to delays in deliveries to Q4 and 2025 and persistent demand weakness for molecular diagnostics. Lower volumes, resultant negative scale effects, and an adverse product mix clouded profitability. Adj. EBIT fell disproportionately by 45% yoy in Q3 and the margin slumped 6ppt yoy to 8.8%. However, management is confident of witnessing a strong rebound in sales and earnings in Q4 and reiterated its recently updated guidance for FY 24, expecting sales to remain stable or decline slightly yoy in constant currency (c.c.) (vs remain stable or rise slightly yoy previously) and the adj. EBIT margin to come in at c.10.0%-12.0% (unchanged). While the analysts remain optimistic on Stratec's long-term prospects, driven by digitisation and the integration of AI in diagnostics, the analysts would like to see a sustained recovery in demand trends and orders. mwb research’s analysts tweak their estimates for the guidance change. This still gives the analysts an unchanged PT of EUR 40.00. The rating remains at HOLD. The full update can be downloaded under https://research-hub.de/companies/research/Stratec%20SE

Symrise reported good set of numbers in Q3 24. Organic (org.) sales growth remained strong at 10.2% yoy during the quarter and was ahead of consensus expectations of +9.1% yoy. However, negative currency effects (-4ppt) slowed the reported top-line growth to 5.2% yoy to EUR 1.26bn (broadly in line with consensus). Sales performance was healthy across sub-segments and regions. Management has now specified its org. sales growth expectation for FY 24 to reach 7% yoy (vs 5%-7% yoy previously), although it did not comment on its adj. EBITDA margin guidance of c.20%. The company also reaffirmed its long-term growth and profitability targets. Despite impressive organic growth, mwb research’s analysts reiterate their SELL rating with a slightly higher price target of EUR 92.50, as valuations appear rich compared to its own history and peer valuation. The full update can be downloaded under https://www.research-hub.de/companies/research/Symrise%20AG

Beiersdorf’s Q3 2024 organic (org.) sales growth slowed to 5.3% yoy from 6.9% yoy in Q2. The growth number fell short of consensus expectations of 6.9% yoy, with misses in both the Consumer and tesa segments. La Prairie was particularly disappointing, reporting an org. decline, due to persistent weakness in China, as against management’s earlier expectation of a recovery. Nevertheless, management is confident of a stronger rebound in Q4 and acceleration in top-line growth across segments. Therefore, it reiterated its guidance for 2024, which was reassuring. Over the medium term, Beiersdorf plans to expand into new markets, particularly with innovative relaunches of its iconic brands – such as Eucerin and Nivea – in India and China and promote its luxury brand Chantecaille in the Chinese market. Meanwhile, its emphasis on innovation with products such as Thiamidol, S-Biometric, and anti-ageing active ingredient Epicelline should further add to its revenue momentum. Current valuations already reflect these prospects, in mwb research’s view. The analysts maintain their HOLD rating with an unchanged PT of EUR 143.00. The full update can be downloaded under https://www.research-hub.de/companies/Beiersdorf%20AG

MTU Aero Engines announced detailed Q3 2024 numbers that were in line with its strong preliminary release. Revenue growth accelerated to 22% yoy in Q3 to reach EUR 1.86bn vs a 10% yoy increase seen in H1 and had surpassed consensus by 5% at the time of pre-release. Profitability was impressive, with adjusted (adj.) EBIT growing disproportionately by 42% yoy to EUR 273m (margin: +2.1ppt yoy to 14.7%), registering a material 18% beat. Again, both commercial maintenance and OEM divisions contributed to the positive topline and EBIT development, with surprisingly strong performance at OEM. MTU confirmed its recently upgraded adj. EBIT guidance for FY 24, now expecting it to reach just over EUR 1bn (vs EUR 950m-EUR 980m earlier), on positive developments across all business segments despite a challenging market environment. Revenue target for FY 24 was reiterated at EUR 7.3bn-EUR 7.5bn. The analysts of mwb research broadly maintain their estimates and retain their target price at EUR 318.00 and their rating remains as HOLD, as valuation appears fair. The full update can be downloaded under https://www.research-hub.de/companies/MTU%20Aero%20Engines%20AG

ZEAL’s preliminary Q3 results have significantly surpassed mwb research’s expectations, showcasing strong momentum despite a lack of jackpot peaks. Q3 sales reached EUR 44.3m (+42% yoy), beating mwb’s estimate of EUR 36.0m by 23%, driven by increased service fees that raised the lottery brokerage gross margin to 15.0% (up from 13.8% in Q2) and new customers acquired in H1 thanks to the high number of jackpot peaks. EBITDA climbed more than proportionally to EUR 15.0m (+59% yoy), benefiting from the economies of scale and supported by the relatively high margins of the charity lotteries and games. Reflecting this momentum, management has raised FY24 sales and EBITDA guidance by roughly 12% and 10% at midpoint, respectively. The analysts attribute some of EBITDA-sales growth discrepancy to initial marketing and launch costs. With ZEAL’s innovative expansion into new segments with attractive growth and margins, alongside its reduced reliance on jackpots, the analysts adjust their estimates, resulting in a new PT of EUR 58.00 (old: EUR 56.50) and maintain their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/ZEAL%20Network%20SE

Frankfurt Airport's winter 24/25 schedule reflects a slight reduction in operations, with 3,600 flights per week and around 675,000 available seats, down 4.2% in flights and 2.2% in seats compared to the previous winter schedule. This comes amid a general weakness in German air travel, particularly at secondary airports, due to high aviation taxes, increased airport charges and new government regulations such as blending quotas for e-fuels. While Frankfurt and Munich, as major hubs, are less affected than smaller airports, the slowdown in passenger growth at Frankfurt (only +1.7% year-on-year from June to September) and a reduction in the number of scheduled flights for winter underline that these airports are not immune to these trends. As a result, the scope for further fee increases appears to be increasingly limited not by the regulatory framework but by the demand side. Despite these challenges, mwb research reiterates the BUY rating with a price target of EUR 65.00. The full update can be downloaded under https://www.research-hub.de/companies/Fraport%20AG

Siltronic reported moderate Q3 results, beating consensus despite the ongoing weak demand for silicon wafers caused by elevated customer inventories and slower-than-expected depletion. Sales reached EUR 357m (1.7% qoq), exceeding consensus by approximately 5%, with EBITDA margins slightly declining to 25% due to higher depreciation, but still above expectations. Free cash flow remained negative but improved to EUR -324m from EUR -580m last year, supported by reduced capex. As planned, the Singapore fab’s capacity is set to reach 1.2m wafers by year-end, with delays in customer qualifications and ramp costs pushing some impacts into 2025, potentially improving EBITDA margin by 1pp for FY24. With a EUR 370m promissory note loan secured, reflecting strong investor confidence, and guidance confirmed, mwb research’s analysts have adjusted their estimates to account for the persistently weak environment, resulting in a revised price target of EUR 92.00, while maintaining their BUY recommendation, anticipating a rebound in Q2 2025, driven by high demand in AI and expected recovery in other industries. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG

ATOSS Software reported good set of results in Q3 2024. Revenue growth momentum was sustained at 14% yoy to EUR 42.1m during the quarter, led by continued traction in cloud and subscription revenues (+38% yoy). Meanwhile, EBIT grew at a pronounced 28% yoy to EUR 16.1m, with the margin improving by 4.3ppt yoy to 38.2%. Given good progress in 9M, management reiterated its FY 24 revenue guidance of EUR 170m, while it expects the EBIT margin to now reach at least 35% vs at least 33%. These results demonstrate the company’s strong execution capabilities. Nevertheless, despite the promising growth prospects for ATOSS, mwb research’s analysts maintain their PT at EUR 116.00 and reiterate their SELL rating on the stock, as it trades at a premium compared to many of its peers. Also, the recent sale of shares by ATOSS Software’s major shareholders, AOB Invest (now holds 22% stake) and General Atlantic (GA. 22% stake) at a discount to institutional investors via a private placement to strengthen the free float and liquidity of the stock, raises questions, as it follows the 1:1 share split exercise in June 2024. The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20SE