TeamViewer's (TMV) Q1 2024 results were in line with consensus in terms of revenues, but fell short by 6% on the adj. EBITDA line. Revenues grew by 7% yoy while billings fell by 1% yoy, due to lower contribution from multi-year-deals. Nevertheless, new billings (+25% yoy), particularly in the high contract value categories, continued to impress. Looking ahead, TMV is hopeful of making good progress in targeting existing and new customers from various industries and regions. Management expects billings to pick up pace in the second half of the year and profitability margins to improve further in H2 on savings from the revised Manchester United deal. Therefore, it confirmed its full-year guidance for 2024 – revenue growth of 7% to 11% yoy and an adj. EBITDA margin of 43% (+1ppt yoy). But Permira’s divestment plans remain a concern even if its impact on share prices is likely to be countered through a buy-back program (EUR 67.7m repurchased in Q1 under its EUR 150m buy-back plan). After finetuning the model, mwb research maintains the BUY rating at a new target price of EUR 15.00. (old EUR 17.10). The full update can be downloaded under https://www.research-hub.de/companies/research/TeamViewer%20AG

Suess MicroTec reported final Q1 figures, which beat expectations at the time of the pre-announcement with a remarkable 46% revenue growth and margins above the upper end of the guidance range, marking a strong start to FY24. Only operating cash flow was a slight disappointment due to lower prepayments received. Advanced Backend Solutions in particular surprised positively, with order intake benefiting from the ongoing AI boom and margins boosted by operating leverage and production efficiencies. Forecasts from major high bandwidth memory (HBM) producers Micron and Samsung point to sustained demand for HBM, supporting Süss MicroTec's growth trajectory. The confirmed guidance now appears conservative, prompting mwb research analysts to raise estimates, resulting in a new PT of EUR 55.00 (old: EUR 44.00). mwb research reiterates the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

Westwing reported positive results in Q1 2024. Revenues and gross merchandise value grew 6% yoy each on an enhanced product mix despite a yoy drop in order volumes. Also, active customer base increased by 2% yoy to 1.3m, registering the first yoy increase since the end of the pandemic and pointing to the effectiveness of the company’s marketing campaigns and improved brand positioning. Adj. EBITDA was up 24% yoy, with the margin improving 90bps yoy to 5.8% in the quarter. Despite a good start to 2024, management retained its cautious outlook for 2024 amid the still stressed consumer demand environment. It continues to guide for revenues of EUR 415m-EUR 445m (-3% to +4% yoy) and adj. EBITDA of EUR 14m-EUR 24m. For 2024-2025, Westwing has planned several initiatives to reduce business complexities, improve scalability, expand its footprint in Europe, and focus on premium brand positioning. In mwb research’s view, these initiatives should take the company on a sustainable revenue and profit growth path. mwb research confirms the PT of EUR 10.00 and BUY rating. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20AG

Zalando returned to growth in Q1 2024. While the B2B business stood out showing double-digit growth (+13.4% yoy), the B2C business also developed positively (GMV growth: +1.3% yoy). Adjusted EBIT improved to EUR 28.3m, reflecting a margin expansion of +1.3pp to 1.3%, mainly driven by favorable order economics and scaling of the ZEOS fulfillment business, offset by higher marketing costs. Looking ahead, the management described the current environment as at least stable. In the current quarter, the company has seen a modest acceleration in Q2, while expecting a stronger impact from the collection transition to spring/summer in May. The company reiterated its FY outlook. mwb research’s analysts leave their estimates unchanged and confirm their PT and rating (EUR 32.00, BUY). The full update can be downloaded under https://www.research-hub.de/companies/Zalando%20SE

Koenig & Bauer (SKB) published its Q1 24 figures lower than the prior year due to the challenging market environment. The company recorded a 10% yoy decline in revenues to EUR 253m in Q1 24, slightly below the consensus and mwb research’s estimate of EUR 258m. As a result of reduced order intake in the Sheetfed segment in Q3 23 as well as a lower percentage of completion achieved in production in the Banknote Solutions business unit yoy, revenue was down in the Sheetfed and Special segments but was slightly higher in the Digital & Webfed segment compared to the same period last year. Koenig & Bauer maintained the FY 24 guidance (given in February) at operating earnings of between EUR 15-30m and revenue of around EUR 1.3bn. The company maintained the medium-term target for revenue of around EUR 1.5bn and an EBIT margin of 6-7% in FY26. Mwb research maintains its BUY rating but cuts its PT to EUR 18.00 (old EUR 20.00) amid lower estimates. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG

Pyramid AG presented indicative Q1 results in an earnings call. Revenues are estimated at around EUR 16-17m (previous year: EUR 20m), whereby the comparison with the previous year is influenced by catch-up effects from the previous year. EBITDA will be around EUR 1m. AKHET, the custom server solutions business, is experiencing the strongest demand, driven by the ongoing AI boom, while Polytouch is struggling with some demand issues. Faytech, on the other hand, shows regional differences, with Germany and China growing dynamically, while the USA continues to struggle due to the loss of a major customer. The guidance for the current fiscal year remains cautiously optimistic with revenues of EUR 78-80m and EBITDA of EUR 5.6-5.8m. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 2.40, but slightly lower their estimates to the lower end of the guidance range. The full update can be downloaded under https://www.research-hub.de/companies/research/Pyramid%20AG

Fresenius Medical Care (FME) released Q1 24 numbers with sales of EUR 4.73bn (+0.4% yoy), in line with market expectations. Adjusted operating income vaulted 23% yoy to EUR 416m, primarily driven by FME25 savings and portfolio optimization partially offset by labor and inflationary cost increases. During Q1, the bottom line surged significantly as adjusted EPS grew to EUR 0.67 by 34.0% yoy, while reported EPS declined by 18% to EUR 0.24. FME has continued executing its business optimization plan and exited all its dialysis clinic operations in Latin America. Moreover, the company closed the divestment of its dialysis clinic network in Turkiye and the Cura Day Hospitals Group, Australia, in April 2024. FME reaffirmed its FY24 outlook and the management also reiterated the medium-term target of achieving an operating margin between 10-14% by FY 25. Based on the Q1 numbers, mwb research’s analysts see no need to adjust their estimates. FME delivered as expected, but the one-offs are still a drag. The analysts reiterate their HOLD recommendation with an unchanged price target of EUR 39.00. The full update can be downloaded under https://www.research-hub.de/companies/Fresenius%20Medical%20Care

WashTec reported reasonable numbers in Q1 24. Revenues declined 8% yoy, while order intake and order backlog fell yoy, due to a general drop in customer demand, particularly from key clients’ accounts in North America. However, the reported EBIT margin improved 10bps yoy on easing input costs and efficiency measures, and despite booking EUR 1m in one-offs, excluding which adj. EBIT and the margin were up 11% yoy (reported EBIT: -7% yoy) and 100bps yoy (to 6.1%), respectively. Management stated that sales funnel this year is a little back-ended, and hence, expects growth rates to pick up. It reiterated its FY24 guidance – revenues to remain stable yoy (+ 3%) and EBIT to increase in mid-single-digit % yoy, which, in the view of mwb research’s analysts, appears a bit light. This is understandable, given the tough macro environment, and reflects certain cooling effects WashTec is currently experiencing in the market. With a current FCF yield of 9%- 10%, mwb research believes the stock is undervalued. The analysts reiterate their BUY rating at an unchanged price target of EUR 53.00. The full update can be downloaded under https://www.research-hub.de/companies/WashTec%20AG

Falk Raudies, CEO, and Christoph Schillmaier, CFO, of FCR Immobilien AG presented its results for 2023 in an earnings call conducted by mwb research. The company reported a solid business performance with a focus on portfolio optimization and lease indexation. The real estate portfolio remains attractively valued at 12.5x annual net cold rent, and sales were realized at an average of 6% above book value. mwb research’s analysts believe that FCR's business model, which is focused on German shopping centers and retail parks at secondary locations, remains attractive even in a rising interest rates environment. Its competitive advantages rests on economies of scale, access to capital and microlocation expertise. Despite a slight decline in FFO due to higher financing costs, the company remains solidly positioned. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 20.50. The previous full update can be downloaded under https://www.research-hub.de/companies/FCR%20Immobilien%20AG

Kontron reported impressive results in Q1 24, buoyed by its multiple recent acquisitions. Revenues grew 36% yoy on broad-based growth across segments and contributions from the recently acquired Katek. Order intake was up 4% yoy at EUR 371m, with the book-to-bill ratio comfortable at 1.04x. Order backlog remained high at c.EUR 1.8bn. EBITDA (adjusted for M&A costs) also grew 33% yoy on strong revenue performance, although the margin was a tad weaker (-30bps yoy). Given a good start to the year, management has confirmed its optimistic guidance for ‘24 (incl. Katek) for sales to grow 55% yoy to EUR 1.9bn and net profit to grow c.+30% yoy. Following the sale of the IT services business in ‘22, the face of the new Kontron is now slowly taking shape, focusing on megatrends such as digitalisation, AI, and sustainability, which the company will serve with IoT products. The recent acquisition of listed Katek appears to be on track and should provide the basis for additional top- and bottom-line growth in the future. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 34.00 and believe that the valuation discount vs peers offers an attractive entry opportunity. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG