Company Name: bet-at-home.com AG ISIN: DE000A0DNAY5   Reason for the research: Update Recommendation: Buy from: 07.11.2024 Target price: EUR 5.50 Target price on sight of: 12 months Last rating change: Analyst: Frederik Jarchow Strong Q3 figures and guidance hike; chg Topic: Yesterday bet-at-home reported a strong set of Q3 fig [ … ]

Company Name: 123fahrschule SE ISIN: DE000A2P4HL9   Reason for the research: Update Recommendation: Buy from: 07.11.2024 Target price: EUR 7.20 Target price on sight of: 12 months Last rating change: Analyst: Philipp Sennewald Improved profitability and strong CFO in Q3 123f published a strong set of preliminary Q3 results, sho [ … ]

TeamViewer (TMV) reported a good set of numbers in Q3 2024. Revenues increased 7% yoy to EUR 168.7m (+8% yoy in constant currencies [c.c.]). The top-line was driven by accelerated growth of 23% yoy in c.c at the Enterprise segment, which witnessed significant traction in higher-value contracts. Profitability benefitted from the scaled back partnership with Manchester United, resulting in a stronger 15% yoy increase in adj. EBITDA to EUR 81.0m, registering a good 9% beat. Management tightened its guidance range for FY24, now expecting revenues of EUR 662m-EUR 668m (vs EUR 660m-EUR 685m earlier) and estimates an adj. EBITDA margin of at least 44% (vs at least 43% previously). The good results reinforce TMV’s position as a market leader in connected worker platforms and underscore the company's relevance in digital transformation. mwb research’s analysts adjust their estimates for the guidance update with limited valuation impact. Therefore, the analysts confirm their PT of EUR 15.00, and reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TeamViewer%20AG

123fahrschule SE (123fs) achieved record revenues of EUR 5.7m in Q3, a new quarterly high. For the period 9M 24, these figures represent a revenue increase of c. 8% yoy to EUR 16.8m. Notably, this growth has been predominantly organic, as 123fs has not expanded its branch footprint over the past 12 months, focusing instead on optimizing EBITDA and cash flow. And this approach is now bearing fruits. Well positioned to benefit from upcoming regulatory changes by 2026, 123fs is progressing toward its recently launched Strategy 2027 goals and the ongoing digital transformation within the German driver training market. mwb research’s analysts reiterate their BUY rating with an unchanged target price of EUR 6.20. The full update can be downloaded under https://www.research-hub.de/companies/research/123fahrschule%20SE

Redcare Pharmacy (RDC) reported detailed results for Q3 2024, with its top line in line with its preliminary numbers. Sales grew at solid 21% yoy during the quarter, led by 20%+ yoy growth in both prescription (Rx) and non-Rx sales. Rx sales in Germany was exceptionally strong at 81% yoy in Q3 and picked further pace to 130% yoy in October on the back of rapid adoption of e-Rx. Adj. EBITDA, however, declined 25% yoy in Q3 and fell 11% short of consensus, due to accelerated marketing investments towards e-Rx. Considering the encouraging impacts of e-Rx, such as inflow from new customers, higher basket values, and higher repeat order rates, management plans to increase marketing spend to capitalize on the e-Rx momentum. RDC had reduced its EBITDA margin outlook for FY24 to 1.2%-2.2% at the time of prelims, which it has now confirmed. mwb research’s analysts see this as less of a concern, as long-term benefits could outweigh these initial costs. The analysts broadly maintain their recently adjusted estimates and confirm their HOLD rating on the stock at an unchanged price target of EUR 145.00. The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

ZEAL’s Q3 results aligned with prelims, exceeding expectations and showing strong momentum despite the absence of jackpot peaks. Q3 sales reached EUR 44.3m (+42% yoy), surpassing mwb research’s estimate by +23%, driven by higher service fees that boosted the lottery brokerage margin to 16.8% (up from 13.8% in Q2) and efficient customer acquisition in H1, leading to increased user activity. EBITDA rose more than proportionally to EUR 14.9m (+59% yoy), benefiting from economies of scale. Games sales remained flat qoq at EUR 2.3m due to regulatory restrictions, with ZEAL focusing on optimizing its expanding portfolio, now over 200 games (up from 120+). The new charity lottery, Traumhausverlosung, exceeded expectations with its first draw, generating EUR 8.6m in billings and a 28% service fee for ZEAL, while attracting a younger, more female demographic. ZEAL also announced a 3.2% share capital reduction by retiring treasury shares and initiated a 2.6% share buyback at a +10% premium. Additionally, ZEAL boosted its FY24 outlook, raising sales guidance by around +12.5% and lifting EBITDA by +7.5% at the midpoint. Confidently, mwb research reiterates their BUY recommendation with an unchanged PT of EUR 58.00. The full update can be downloaded under https://www.research-hub.de/companies/ZEAL%20Network%20SE

Krones reported a good set of results in Q3 24. The strong business momentum witnessed in Q2 trickled into Q3. Revenues grew 13% yoy to EUR 1.32bn, supported by easing supply concerns. EBITDA increased at a stronger 22% yoy to EUR 134.9m (margin: +70bps yoy to 10.2%), buoyed by better capacity utilisation and efficiency. Revenues and EBITDA were 1% and 3% ahead of consensus, respectively. Order inflows were robust at EUR 1.32bn (stable yoy; book-to-bill: 1.0x) in Q3. This took the order backlog to EUR 4.4bn (+6% vs end-2023), providing good visibility until end 2025. Management is confident of its book-to-bill ratio staying slightly above 1.0x in FY24 and reiterated its FY guidance. mwb research’s analysts remain constructive on Krones’ prospects. Its strong market position (25% global market share), diverse product range, and sustainability focus are likely to help the company reach its ambitions sales target of c. EUR 7bn and an EBITDA margin of 11-13% by `28. With solid financials, Krones remains an attractive investment. The analysts maintain their BUY rating with an unchanged PT of EUR 145.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Krones%20AG

GEA has announced its final Q3 results. They are in line with the pre-announcement in October, confirming moderate revenue growth (+1.4% yoy) and an EBITDA margin improvement of 80 bps. GEA reiterated its FY24 EBITDA margin and organic revenue growth guidance. Q3 order intake was up 4% yoy, but nine-month order intake was down 6%. Divisional performance was varied, reflecting mixed industry dynamics. Profitability benefited from a 300 bps increase in the share of high-margin service business, which now represents 39% of sales. However, operating cash flow in the third quarter was 24% lower than a year earlier due to a deteriorating net working capital position. While the Mission 30 strategy targets an EBITDA margin of 17%-19% and annual organic sales growth of 5% by 2030, these targets seem ambitious given the macroeconomic risks. mwb research’s analysts reiterate their HOLD rating with an unchanged PT of EUR 50.00. The full update can be downloaded under https://www.research-hub.de/companies/GEA%20Group%20AG

WashTec AG reported mixed results for Q3/9M with lower revenues but improved profitability. While Q3 revenues fell by 5.3% to EUR 114.1m, mainly due to a weak performance in North America, a positive trend is emerging after revenues declined by 8% and 6% in Q1 and Q2 respectively. This trend is supported by an increase in order intake in Q2 and Q3, which lifted the company's order book above last year's level. Despite lower revenues, EBIT increased by 2.6% to EUR 27.6m for the 9M period, reflecting the company's resilient business model. Free cash flow remained strong at EUR 25.0m in the first 9M, down slightly from EUR 26.8m last year. WashTec confirms its FY24 guidance and expects revenues to be in line with the previous year (±3%), albeit now at the lower end, and EBIT to increase by a mid-single-digit percentage. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 53.00, as they believe the turnaround is imminent. The full update can be downloaded under https://www.research-hub.de/companies/WashTec%20AG

Zalando reported final Q3 2024 numbers that were in line with its preliminary release. The company reported a notable pick-up in gross merchandise volume (GMV). Revenues grew 5.0% yoy and adj. EBIT rose to c.4x Q3 2023 level. Positive results were driven by a strong start to the autumn/winter season, further supported by the company’s renewed ecosystem. Zalando's positive Q3 results reinforces its healthy market momentum. Moreover, its strong commitment to invest in key areas – such as driving customer loyalty and strengthening its European logistics network – should underpin GMV growth. mwb research’s analysts maintain their recently updated estimates and retain their PT at EUR 33.00. After the recent dip the analysts change their rating from HOLD to BUY. The full update can be downloaded under https://www.research-hub.de/companies/Zalando%20SE