Amadeus Fire has issued a profit warning due to continued economic pessimism in Germany. The company's operating EBITA for the first nine months of the year decreased by 14.8% yoy to EUR 46.4m, which was below expectations. The decrease was mainly driven by lower temporary and permanent placement revenues in the Staffing segment. In response to the challenging economic environment, Amadeus Fire has revised its full year 2024 operating EBITA guidance to approximately EUR 58m, down from the previously revised guidance of EUR 64-70m. Despite the current headwinds, Amadeus Fire's training segment has performed well, partially offsetting the decline in staffing services. mwb research’s analysts reiterate their BUY rating as they believe in the long-term growth and cash generation capabilities, but lower their PT from EUR 117.00 to EUR 110.00 as they lower their estimates. The full update can be downloaded under https://www.research-hub.de/companies/Amadeus%20FiRe%20AG

At the "mwb inspired" event, Philip Reicherstorfer from AUTO1 Group outlined the company's strategic adjustments since the pandemic and its path to profitability. While the digital used car market grew rapidly, esp. during the pandemic, companies faced challenges like high costs and supply chain disruptions, which led to market exits of some competitors. AUTO1 remained stable due to its diversified model and ongoing investments in internalized processes and technologies. The most recent addition is the AI-powered AUTO1 Car Audit Technology (CAT), launched in September 2024, which is expected to further boost efficiency in a future roll-out. AUTO1's innovations and operational focus position the company to achieve profitability this year. mwb research’s analysts confirm their BUY rating at an unchanged price target of EUR 11.00. The full update can be downloaded under https://www.research-hub.de/companies/AUTO1%20GROUP%20SE

Sartorius reported Q3 2024 numbers. While revenues of EUR 794m (-2% yoy in c.c.) in Q3 missed consensus by 3%, the company fared better in terms of adj. EBITDA, which came 7% ahead of market expectations, as benefits from its efficiency program trickled through. Positively, order intake was 7% ahead amid gradually improving demand for consumables. However, the equipment business still remains soft, and management reiterated its tepid guidance for the full year, expecting revenues to remain flat yoy (+/- low-single-digit %) and the underlying EBITDA margin to come in at c.27%-29%. Moreover, long-term growth targets of more than 10% top-line growth remain ambitious, with significant risks involved in achieving the necessary sales acceleration to meet 2028 projections. Against this backdrop, mwb research’s analysts believe that the current valuation, with elevated P/E of 77x in 2025 appears expensive. Therefore mwb research reiterates the price target of EUR 173.00 and the SELL rating. The full update can be downloaded under research-hub.de/companies/Sartorius%20AG

Infineon is set to announce its Q4 results on November 12. Despite concerns about a slowdown in the automotive sector, mwb research believes this might be temporary, as the 1.9% dip in China’s vehicle production appears more like a normalization than a prolonged downturn. Notably, global EV sales surged by 30.5% in September, driven primarily by China, offsetting broader weakness since EVs require significantly more semiconductor content. Meanwhile, the booming demand for AI technologies, reflected in TSMC’s recent record performance, is expected to offset the weakness in other segments, with Infineon expecting AI server revenue to double by FY25, reaching EUR 1bn in 2-3 years. The industrial and IoT sectors are stabilizing at very low levels, while the smartphone and PC sectors are recovering modestly but remain below previous highs. mwb research believes a recovery is anticipated in 2025, with the key factor to watch being the EUR 22bn backlog, which has been decreasing for seven quarters but could signal a rebound. mwb research confidently reiterates their BUY rating with a price target of EUR 40.00. The full update can be downloaded under https://www.research-hub.de/companies/Infineon%20Technologies%20AG

At yesterday’s mwb research roundtable, Tim Hameister, CFO of Friedrich Vorwerk (FVG), highlighted the strong German market, driven by growing demand for energy infrastructure. FVG is currently facing production capacity challenges due to high order volumes, with capacity utilization close to 100% in recent years. The main constraint is a shortage of skilled labor, which FVG is addressing through new personnel programs. As a result, the number of employees increased by 7% in the first half of the year, with a focus on recruiting specialists from Eastern Europe and Latin America. In light of FVG's capacity expansion, combined with the strong order situation and margin recovery, the analysts of mwb research have raised their estimates for the next few years. The analysts confirm their BUY rating and raise their PT to EUR 33.00 from EUR 24.00). The complete analysis is available at (https://www.researchhub.de/companies/Friedrich%20Vorwerk%20Group%20SE

Nagarro SE confirmed that it is in discussions regarding a potential take-private transaction, involving certain board members who hold shares in the company. While the talks include the possibility of a public tender offer, the Management Board emphasized that no agreement has been reached, and the outcome remains uncertain. According to Bloomberg, Warburg Pincus, a major private equity firm with over USD 83 billion in assets under management, could be the potential buyer. Nagarro, which focuses on digital product engineering and Generative AI, has seen its valuation decline since 2021, but the potential for going private could allow it to focus on long-term goals. Despite the current challenges, mwb research believes Nagarro offers significant upside potential, especially if the company can reaccelerate its revenue and earnings growth. With its lower market valuation compared to historical levels, the company appears to be an attractive target. The analysts maintain a price target of EUR 102.00 and reaffirm the BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Nagarro%20SE

Wolftank has announced significant leadership changes. CEO Peter Werth will step down at the end of 2024 after a decade and will chair the newly created Strategic Advisory Board. Simon Reckla, a current board member, will assume the role of CEO starting January 1, 2025, while Christian Pukljak will continue as CFO, ensuring financial continuity. These changes are part of a strategic realignment aimed at driving the company’s growth. The Strategic Advisory Board will collaborate with the Executive Committee to develop growth strategies and set guidelines for expansion, innovation, and risk management. Wolftank recently reported strong half-year results and a robust order intake. The management restructuring aims to strengthen its market position in the energy and environmental sectors while capitalizing on new opportunities. mwb research reiterates its BUY rating with unchanged PT of EUR 20.00. The full update can be downloaded under https://www.research-hub.de/companies/Wolftank-Adisa%20Holding%20AG

In September, Photon Energy's PV power production declined by 6% year-on-year despite increased capacity, due to a 19% drop in specific yields caused by poor weather conditions. The average realized electricity price was EUR 171/MWh, down 3% from August but up 9% year-on-year, with the sequential decline mainly due to lower prices in Australia. The company signed an agreement in early October, expected to close this month, to sell two solar power plants and a hybrid solar/battery project in Australia. The sale would reduce Photon Energy’s IPP portfolio capacity by 10% and generate EUR 6m in net cash. The transaction is another step in the strategic shift toward energy storage technologies and asset-light energy services. mwb research confirms their EUR 2.50 price target and the Spec. Buy rating. The full update can be downloaded under https://www.research-hub.de/companies/Photon%20Energy%20NV

ZEAL is set to announce its Q3 results on 6 November. Despite the absence of significant jackpot peaks, which typically boost engagement and attract more participants, we remain optimistic about yoy growth. This optimism is driven by several catalysts, including a projected increase in gross margins to around 15% (up from 13.8% in Q2) thanks to the increase in service fees, gradual and modest improvement in the games business which is still restricted, and the promising contribution from charity lotteries, which offer attractive margins of 25-30%. Notably, we are closely watching the performance of the new raffle lottery, Traumhausverlosung, which launched in August. Mwb research expects Q3 sales to reach approximately EUR 36m (+15.5% yoy) and EBITDA around EUR 9.5m, with a margin of 26%. Overall, mwb research is expecting a strong yoy performance and thus reaffirm their estimates and maintain a BUY recommendation with an unchanged price target of EUR 56.50. The full update can be downloaded under https://www.research-hub.de/companies/ZEAL%20Network%20SE

Enapter has announced that series production of its megawatt (MW) electrolysers has started in China through its joint venture with the Wolong Group. The core of the electrolyser will continue to be manufactured by Enapter in Europe and shipped to China for final assembly. Outsourcing to China has several advantages: Firstly, costs will be reduced and secondly, the joint venture will provide access to the Chinese market. A MoU has already been signed with China's largest steel producer for the purchase of electrolysers. Enapter is already successfully supplying MW systems to the EU and US markets. Orders for approx. 20 MW were booked in H1 24, which will have to be doubled in H2 24 in order to achieve the targets set. The MoU in China confirms the view of the analysts at mwb research that Enapter's strategy of expanding via distribution partners is paying off. The analysts of mwb research maintain their BUY recommendation with a price target of EUR 12.00, as we are convinced that Enapter can continue to grow its order intake so strongly. The full update can be downloaded under https://www.research-hub.de/companies/Enapter%20AG