mwb research initiates coverage of Airbus SE with a SELL recommendation and a PT of 127.00 offering a downside potential of -10.0%. Airbus SE, a global aerospace leader, benefits from a strong order backlog and recurring revenues (~ 20%) but faces challenges in translating market dominance into financial performance. The global aircraft market is growing with a CAGR of 3,5%, but potential competition from China coupled with increasing supply chain risks pose threats for Airbus. Despite an impressive backlog of 8,564 jets, providing revenue visibility for the next decade, Airbus faces challenges in production scaling, profitability in its Space division, and ongoing supply chain issues. Additionally, a 66% drop in order intake for their commercial aircraft segment, coupled with achieving only 58% of the target delivery rate as of today, raises questions about their current high valuations, with a P/E ratio of 30. Competition is set to intensify, especially with COMAC’s potential license from the EASA in the EU in 2025. The full update can be downloaded under https://www.research-hub.de/companies/Airbus%20SE

Company Name: Telefonica Deutschland Holding AG ISIN: DE000A1J5RX9   Reason for the research: Special Situation Recommendation: Buy from: 23.10.2024 Target price: €3.00 Target price on sight of: 12 months Last rating change: - Analyst: Kevin Sheil First Berlin Equity Research on 23.10.2024 initiated coverage on Telefonica D [ … ]

TAKKT reported improved but still weak preliminary results. Organic sales declined by 14.1% yoy to EUR 269m, while EBITDA fell by 32% yoy to EUR 20.5m. The company continues to face several challenges, including a weaker than expected seasonal upturn in incoming orders and a continued difficult market environment. As a result, TAKKT has once again revised its FY24 guidance downwards - after having already warned with the H1 results. The company now expects organic growth of between -15% and - 17% and an adjusted EBITDA margin of between 6.3% and 7.1%. One-off expenses are expected to be EUR 15-20m, which is higher than originally expected. TAKKT is balancing cost management with investments in growth and processes. While this may have a negative impact on Q4 profitability, the company expects free cash flow to remain relatively stable due to reduced net working capital. mwb research adjust their estimates accordingly, resulting in a lower PT of EUR 9.50 (previously EUR 11.00). HOLD. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Elmos will report its Q3 results on 6 November, with the stock losing momentum after peaking around EUR 90, a trend mirrored by its peers as well. The decline stems from concerns over a potential slowdown in the automotive sector, following profit warnings and guidance revisions from major car manufacturers, as well as broader market volatility in semiconductor stocks, driven by shifting sentiment around AI, exemplified by ASML’s recent disappointing performance. Profit-taking after the strong rally also contributed to the pullback. Against this backdrop, mwb research’s analysts expect the book-to-bill ratio for Q3 to be below 1, reflecting the anticipated temporary slowdown in Q4. Nevertheless, the analysts still anticipate a high single-digit QoQ sales growth and a solid 25% margin in Q3. The analysts maintain their BUY rating with an unchanged price target of EUR 100.00. The full update can be downloaded under https://research-hub.de/companies/Elmos%20Semiconductor%20SE

Company Name: R. STAHL AG ISIN: DE000A1PHBB5   Reason for the research: Update Recommendation: Buy from: 23.10.2024 Target price: EUR 29.00 Target price on sight of: 12 months Last rating change: Analyst: Christian Sandherr Solid Q3 preview // FY guidance in reach Topic: R. Stahl will release its Q3 report on November 6th. We e [ … ]

123fahrschule SE (123fs) is the leader in digital driver training in Germany and plans to offer a mix of classroom instruction, online theory, and driving simulators. 123fs aims to make learning faster, cheaper and more flexible, saving students up to EUR 1000. E-learning and simulators are expected to allow learners to complete up to 50% of their practical training digitally, making lessons more efficient and cost-effective. Legislative changes expected to come into effect in 2026 support this digital shift, giving 123fs a strong advantage due to its digital approach. With solid expansion plans, 123fs is positioned for strong growth and increased market share. 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

CHAPTERS Group (CHG) continued its growth momentum in H1 2024, completing five acquisitions in the Vertical Market Software (VMS) segment, driving a 34% increase in operating revenues to EUR 58.4m and 23% growth in adjusted EBITDA to EUR 13.7m. The company's focus shifted further towards VMS following the spin-off of the ENTRO Group, which was completed in September. CHG remains well-funded for further acquisitions following an oversubscribed capital increase in August. In our view, CHAPTERS Group presents an exciting opportunity for investors to join large value investors and invest in long-term growth. We maintain our PT of EUR 28.00 and the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/CHAPTERS%20Group%20AG

Bechtle AG reported a slight 2% increase in Q3 24 revenues to EUR 1,510m, but earnings before taxes (EBT) dropped sharply by 16.9% due to weak demand, especially in the German and French SME markets. The EBT margin fell to 5.2% (previous year’s Q3: 6.3%) as the company faced higher costs and economic uncertainty, with Germany, its largest market, particularly affected (Q2 sales were already -5% yoy). Despite efforts to cut costs, management does not expect to meet its guidance for FY24 and has not provided an updated forecast. Although near-term challenges persist, Bechtle's long-term growth prospects in digitalization and IT security remain strong, leading to a maintained BUY rating but with a reduced price target of EUR 49.00 (old EUR 55.00). The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

Metro’s Q4 23/24 revenues grew 3.8% yoy in constant currencies (c.c.), led by growth in its delivery and online marketplace businesses. This took the full-year revenue growth to 5.9% yoy on a c.c. and portfolio adjusted (adj.) basis, reaching the upper half of its guidance range of 3%-7% yoy. The top line growth was largely led by performances in the East and Russia, whilst the West witnessed a modest increase and Germany reported almost stable revenues during the year, due to a late start to the summer, which impacted its HoReCa business. Somewhat disappointing was the commentary on profits. Citing cost pressures and transformation-related expenses, management now expects to reach the lower-end of its adj. EBITDA guidance (-EUR 100m to +EUR 50m vs FY 22/23) and report negative EPS for the full year. While Metro is progressing well in its sCore growth strategy and growing its multichannel HoReCa customers, substantial momentum is required to reach its 2030 ambitions and drive forecast increases. mwb research’s analysts maintain their BUY rating with a reduced price target of EUR 5.80 (old: EUR 7.70), as valuations remain attractive, following the drop in share price over the past months. The full update can be downloaded under https://www.research-hub.de/companies/research/Metro%20AG

Traton SE announced strong prelim. Q3 24 results with an adjusted EBIT of EUR 1.14bn, up 19% yoy. The adjusted EBIT margin was 9.6% on sales of EUR 11.9bn, up 5% yoy. Net cash flow from operating activities was also impressive at EUR 1.3bn, more than double the yoy figure and ahead of the consensus of EUR 0.8bn. However, this performance was largely driven by catch-up effects following a supply disruption caused by a factory fire in Q2 24. For example, net cash flow from operating activities was negative in Q2 at EUR -374m, which puts the Q3 24 result into perspective. Despite these positive results, ongoing economic challenges, particularly in Europe, continue to pose risks. mwb research’s analysts remain cautious on Traton as they are concerned about a potential economic slowdown in both Europe and the US, but they maintain their BUY rating with an unchanged PT of EUR 34.00. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE