The truck industry continues to be challenged by the difficult global economic environment. Despite weaker demand in Europe and North America, Traton expects deliveries to catch up in the second half of the year. Management had reiterated its outlook for 2024 at the time of the Q2 results, forecasting unit and revenue growth of -5% to +10% yoy. mwb research’s analysts expect volumes to be at the lower end of this range: in H1, volumes were down 5% yoy, while order intake was in line with last year. However, order momentum slowed in Q2 due to weaker demand in Europe. As a result, unit sales in H2 24 could be lower than in H2 23, leading to a decline of more than 2% for the full year. Concerns about demand in the coming quarters also appear to be confirmed by competitors who have started to reduce their temporary workforce. In response to these economic pressures, the analysts have slightly lowered the PT from EUR 35.00 to EUR 34.00, but the BUY rating remains after a share price decline of around 20%. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE

CHAPTERS Group AG has increased its stake in Ookam Software, its largest investment platform, from 80% to 100%, enhancing its control and financial flexibility. Ookam, founded in 2019, has acquired 23 companies across Germany, Austria, the Czech Republic, and Slovakia. Further, CHAPTERS recently completed an oversubscribed capital increase, raising EUR 84.9m, with key investors, including Spotify founder Daniel Ek's family office, significantly increasing their stakes, underlining their strong commitment and confidence in CHAPTERS. After model adjustments, mwb research’s analysts raise their PT to EUR 28.00 and reiterate to BUY. The full update can be downloaded under https://www.research-hub.de/companies/CHAPTERS%20Group%20AG

Atoss Software’s major shareholders, AOB Invest and General Atlantic (GA), sold shares in a private placement to institutional investors to boost free float and stock liquidity. The shares were sold at EUR 120.00 each, a 14% discount to the previous close, representing around 6.81% of the company's share capital. At the same time, GA also increased its stake by purchasing additional shares from AOB Invest under a previous agreement, which resulted in a net increase in GA’s shareholding. Despite these transactions, AOB Invest remains the largest shareholder. The transaction raises some questions, especially following the recent stock split. mwb research’s analysts reiterate to SELL with an unchanged PT of EUR 116.00. The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20SE

AlphaBIZ, a South Korean news outlet, reported this week that Samsung Electronics has taken a small but notable step towards entering the GaN foundry market by installing one to two of Aixtron's latest MOCVD systems, likely the G10-GaN, at its Giheung facility in the second quarter of 2024. Samsung previously announced its intention to launch a GaN foundry service by 2025. Discussions between Samsung and Aixtron to purchase 30 to 40 systems for the foundry were reported in 2023, although neither company has confirmed this. GaN is increasingly being used in various industries, including consumer electronics, data centers and potentially electric vehicles, due to its efficiency and reduced heat generation. The market has punished Aixtron heavily on fears that investment in SiC production equipment would stall as a result of the slowdown in the EV market. Therefore, it may be reassuring that there are signs that large GaN projects are progressing. mwb research’s analysts leave their estimates unchanged and reiterate their BUY recommendation with a price target of EUR 29.00. The full update can be downloaded under https://www.research-hub.de/companies/AIXTRON%20SE

China’s aggressive investment in chip manufacturing equipment raises concerns about overcapacity in legacy chip production (20nm and above), driven by its goal of semiconductor self-sufficiency. Siltronic, having phased out production of smaller wafers, is now strategically focused on higher-value 200mm and 300mm wafers used in advanced nodes. Consequently, while Siltronic is unlikely to benefit from this legacy chip overcapacity, it is also insulated from its potential negative impacts, thanks to its strong positioning in the high-end wafer market. mwb research’s analysts expect continued robust demand for Siltronic’s high-purity, larger wafers, supported by projected semiconductor industry growth of 16% in 2024 and 12.5% in 2025. This growth is driven by memory and logic segments—both primarily fabricated on 300mm wafers, where Siltronic maintains high margins. mwb research’s analysts reiterate their BUY recommendation with an unchanged price target of EUR 94.00, based on Siltronic's exposure to high-growth trends like AI, autonomous driving, and electrification. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG

Enapter has received major orders from Italy, including four AEM multicore electrolysers for Opificio Idrogeno Marche and one megawatt electrolyser for FMC s.r.l., totaling in the high seven-digit EUR range. These orders, scheduled for delivery in 2025, are part of Enapter's growing order book. Italy is advancing as a hydrogen hub through the European Hydrogen Backbone Initiative and national projects. Following a strong order intake of EUR 23.4m in the first half of the year, Enapter's order backlog has increased to c. EUR 41m. This includes EUR 13m secured for the second half of 2024 and EUR 28m for 2025, with the additional large orders of around EUR 7m (mwb est.) bringing the total to EUR 35m and covering 44% of expected revenues. Enapter's increasing order flow supports the delivery of its targets and is in line with mwb research’s expectations. The analysts maintain their BUY rating with a PT of EUR 15.00, supported by the robust order intake. The full update can be downloaded under https://www.research-hub.de/companies/Enapter%20AG

MTU Aero Engines ("MTU") continues to benefit from rising demand for aircraft and, in particular, for engine MRO services. Global air traffic is recovering, with a projected CAGR of 8.4% to 2027, while long-term trends show steady growth in passenger and freight traffic. Airlines are keeping their aircraft in service longer due to delivery delays, increasing demand for MTU's MRO services, while engine shops across the industry are facing severe capacity constraints. With a strong order backlog and favorable industry conditions, MTU is well positioned for further growth. We raise our estimates and adjust our price target to EUR 310.00 (previously EUR 278.00). BUY. The full update can be downloaded under https://www.research-hub.de/companies/MTU%20Aero%20Engines%20AG

Karin Radström will become CEO on October 1, 2024, and will continue to lead the Europe and Latin America regions and Mercedes-Benz Trucks until a successor is found. She has been a member of the Board of Management since 2021 and her term has been confirmed until 2029. Her initial focus will be on reducing costs and improving operations in a challenging economic environment. Demand has weakened due to restrictive monetary policies, leading to short-time work at the Wörth plant and the layoff of nearly 1,000 temporary workers. In Q2, unit sales declined by 15% overall, with Mercedes-Benz Europe and Trucks Asia posting declines of 22% and 29%, respectively. Concerns about future demand and the sustainability of price increases led us to change our PT from EUR 42.00 to EUR 38.00, although the BUY rating remains in place after a 32% decline in the share price. The full update is available at https://www.research-hub.de/companies/Daimler%20Truck%20Holding%20AG

On August 15, 2024, Bayer achieved a significant legal victory in its ongoing Roundup litigation when the U.S. Court of Appeals for the Third Circuit ruled that federal law preempts state law regarding failure-to-warn claims about cancer risks from Roundup. This ruling applies in the Third Circuit, which covers Pennsylvania, New Jersey, and Delaware. However, the decision contradicts rulings from other U.S. Courts of Appeal, leading Bayer to believe that a U.S. Supreme Court resolution is necessary. If the U.S. Supreme Court accepts the case, a ruling is unlikely before the end of 2025, but could block all claims based on the failure to provide cancer warnings, which should be a significant share of the 58,000 pending lawsuits. Bayer is simultaneously intensifying its lobbying efforts and public relations campaign in the U.S. to protect Roundup’s market position and could even threaten to use bankruptcy tactics to manage liability. Recent rulings and initiatives could lead to at least a partial de-risking and thus a rerating of the stock. mwb research’s analysts reiterate their BUY rating with a price target of EUR 38.00. The full update can be downloaded under https://www.research-hub.de/companies/Bayer%20AG

Germany has deployed its first IRIS-T SLM air defense system, which includes radar technology from Hensoldt. This can be seen as part of the broader European Sky Shield Initiative (ESSI), aimed at defending NATO countries against missile threats. With 21 nations involved, ESSI presents significant revenue opportunities for Hensoldt, particularly as European countries accelerate their efforts to bolster air defense. mwb research’s analysts estimate Hensoldt's revenue potential from the ESSI to range between EUR 420m and EUR 1.6bn, depending on the scale of deployment and not included in mwb estimates yet. The recent share price drop presents a favorable entry point, supported by factors like the ESSI, upcoming elections in Germany, and ongoing EU defense gaps. mwb research’s analysts reaffirm their BUY rating with a target price of EUR 44.00. The full update can be downloaded under https://www.research-hub.de/companies/Hensoldt%20AG