Rheinmetall has announced a 50:50 joint venture with Leonardo, forming Leonardo Rheinmetall Military Vehicles (LRMV), to strengthen its position in the defense market. With 60% of operations based in Italy, this JV is set to lay the groundwork for Rheinmetall's potential EUR 20bn order from Italy's AICS program, which will be the largest in the company's history. Despite the strategic importance of this partnership, the small price reaction so far presents a great entry point for investors according to the analyst. The experts see this JV as a critical step toward Rheinmetall's long-term growth. mwb research’s analysts reaffirm their BUY rating and upgrade their target price to EUR 650.00. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

Nagarro SE has revised its 2024 sales outlook to approximately EUR 960m, down from EUR 1bn, while maintaining an adjusted EBITDA margin of over 14%. The company’s earlier forecast had already been cautiously optimistic, but slower-than-expected recovery led to this adjustment. This is consistent with the performance so far this year, as Nagarro saw a moderate revenue increase in H1, alongside a strong improvement in adjusted EBITDA, largely due to cost-cutting efforts. Persistent macroeconomic uncertainties have caused clients to tighten budgets and delay innovation projects. Despite the lowered outlook, Nagarro’s long-term growth drivers remain strong, and mwb research continues to recommend a BUY rating with a revised price target of EUR 102.00 (old: EUR 107.00). The full update can be downloaded under https://www.research-hub.de/companies/Nagarro%20SE

MTU Aero Engines has reported preliminary figures for 9M 24. Numbers indicate strong Q3 growth, with revenues increasing c. 23% yoy, significantly higher than the 10% growth observed in H1. The commercial maintenance sector led this growth, but OEM also was surprisingly strong. The Q3 adj. EBIT margin improved by 200bp yoy, most likely driven by increased fixed cost absorption. MTU has raised its earnings forecast for FY24, now expecting an adjusted EBIT of just over EUR 1bn, up from the previous range of EUR 950m to EUR 980m. This revision is attributed to positive developments across all business segments despite a challenging market environment. mwb research adjusts estimates and raises the target price from EUR 310.00 to EUR 318.00. After the strong performance of the MTU share (+74% in 12M), the good prospects seem fully reflected in the current share price. mwb research downgrades to HOLD. The full update can be downloaded under https://www.research-hub.de/companies/MTU%20Aero%20Engines%20AG

Siltronic is gearing up to release its Q3 results on October 24 after a tough year, with its stock down 29% year-to-date, mostly due to sluggish wafer demand and higher-than-expected inventory levels at customers. AI trends are expected to be the main sales driver in 2024, as AI servers require significantly 8x more silicon content compared to traditional servers. The automotive sector may see a temporary dip in wafer demand due to short-term weak demand while gradual recovery in smartphone and PC markets is contributing positively. Industrial and IoT sectors have stabilized at low levels and await a rebound. Overall, the high inventory in all segments continue to offset strong AI-driven growth and delay a full recovery in 2024. All eyes are on the Q3 performance, as investors hunt for signs of a rebound in the wafer market to ride the industry’s next upcycle. That said, mwb analysts anticipate a real surge in wafer demand kicking off only in 2025. Despite the wait, they are confident in Siltronic’s ability to stay strong, thanks to its solid position in booming industries like AI and electrification. mwb research sticks with the BUY rating and a price target of EUR 94.00, which points to a high upside potential of around 48.6%. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG

Cicor Technologies delivered strong Q3 2024 results, with sales reaching CHF 120.4 million, a 26.3% increase compared to the previous year, significantly improving from the 16.1% growth in H1. This rise was mainly driven by acquisitions, which contributed 28.5% to growth, while organic growth, though still negative, improved from H1. The order intake also showed resilience, with a book-to-bill ratio of 1.01x, marking a recovery from the first half of the year. Looking ahead, Cicor remains confident in achieving its full-year targets, driven by strong customer relationships and continued market share gains. mwb research maintains a BUY rating and its price target of CHF 82.00. The full update can be downloaded under https://www.research-hub.de/companies/Cicor%20Technologies%20Ltd

Nordex's order intake in Q3 was better than expected, driven by improved momentum particularly towards the end of the quarter. At 1.7 GW in Q3, Nordex's order situation thus improved sequentially. However, this still represents a yoy decline of 23%. The company's cumulative order intake for the first nine months of 2024 - a more appropriate measure - rose by 4% yoy to 4.9 GW. The average selling price (ASP) remained stable at EUR 0.90m per MW in the first nine months, with an increase to EUR 0.92m per MW in Q3. With the expected positive momentum in terms of both volumes and prices, mwb research analysts believe that Nordex is well on track for profitable growth in the future. The analysts reiterate our BUY recommendation with a price target of EUR 22.00. The full update can be downloaded under https://www.research-hub.de/companies/Nordex%20SE.

The German Travel Association (DRV) held its third Capital Congress in Berlin last week, attended by 450 industry professionals. Despite the gloomy economic climate and geopolitical crises, the mood in the German travel industry is surprisingly upbeat. DRV President Norbert Fiebig reported a 12% increase in turnover for the current tourism year, underlining the resilience of the travel industry. In particular, the market share of package tours is growing as consumers increasingly appreciate their convenience and strong legal protection, as demonstrated by the successful reimbursement of all customers of the insolvent FTI. This positive view fits well with TUI's recent pre-close trading update, which showed strong demand in all TUI segments, a strong finish to the 2024 summer season and encouraging bookings for the 2024/25 winter season. Based on slightly upgraded estimates, mwb research reiterates the BUY recommendation with a PT of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG

Traton SE announced a 5% increase in Q3 unit sales yoy, driven mainly by a 41% yoy increase in its Navistar division in North America. However, this increase was largely due to catch-up effects from a fire at a factory in Q2, which had caused a significant drop in unit sales in that period. Volkswagen Truck & Bus also performed well, benefiting from a strong performance in South America. On the other hand, Traton's MAN subsidiary recorded a 29% yoy decline, reflecting the economic difficulties in Europe. While Q3 unit sales look strong at first glance, they are heavily influenced by these catch-up effects. The analysts of mwb research remain cautious on the ongoing economic challenges, which are already strongly impacting the European market and could potentially spill over to the Americas. The analysts 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

SUSS MicroTec will publish its Q3 results on November 7. mwb research expects revenue growth of 39% year-over-year, primarily driven by strong demand for Advanced Backend Solutions, especially Temporary Bonders used in High Bandwidth Memory (HBM) production. While gross margin saw a boost in Q2 due to a favorable product mix and volume, mwb research expects a slight sequential decline in the gross and EBIT margin in Q3. The HBM market continues to expand rapidly, with Micron estimating growth from USD 4 billion in 2023 to over USD 25 billion in 2025. Both Micron and SK Hynix are significantly increasing their capital expenditures to support this surge, particularly in HBM-related manufacturing. This bodes well for SUSS MicroTec, which mwb research believes to be a key supplier to Micron and Samsung in HBM. As a result, the analysts raise their estimates for FY25 and FY26 and increase the price target to EUR 77.00 (old: EUR 72.00). BUY. The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

Gerresheimer's Q3 results were in line with expectations, with sales slightly up but EBITDA margins down. The company has already lowered its growth forecasts for both FY24 and FY25 due to weaker sales of injection vials and other market challenges. In addition, the Morganton facility suffered significant flood damage from Hurricane Helene, which disrupted vial production. The plant is expected to be partially restored by November, but the downtime exacerbates existing market pressures. Despite these issues, mwb research remains optimistic about the company's long-term prospects and reiterate the BUY rating with an unchanged PT of EUR 96.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Gerresheimer%20AG