Yesterday at its Capital Markets Day, BASF unveiled an ambitious new corporate strategy focused on active portfolio management, expansion into high-growth markets, and stricter capital allocation. The announcement of a dividend cut disappointed investors, though overall shareholder returns are expected to remain on par with previous years, supported by a share buyback program. BASF is restructuring its portfolio into core and standalone business units, each requiring a tailored approach. Rumored IPO of the Agricultural Solutions is confirmed and is set to unlock hidden value. Growth initiatives, such as the EUR 10bn investment in the Zhanjiang Verbund site in Asia, are expected to significantly boost sales and profits by 2030. Additionally, optimizing the Ludwigshafen site is on track to deliver annual savings of EUR 2.1bn by 2026. With new financial targets of EUR 10-12bn in EBITDA, 10% ROCE by 2028, and over EUR 12bn in free cash flow, BASF is well-positioned for long-term growth. mwb research’s analysts see the recent development as an opportunity to unlock tremendous value and thus the analysts maintain a BUY rating with a PT of EUR 62.00, reflecting their confidence in the company’s transformation. The full update can be downloaded under https://www.research-hub.de/companies/BASF%20SE

Formycon’s FYB202, a biosimilar to Johnson & Johnson’s Stelara, has been approved by the European Commission. Stelara, which generates over USD 10bn in annual sales, is used to treat conditions such as Crohn’s disease, plaque psoriasis, and psoriatic arthritis. Formycon partnered with Fresenius Kabi to commercialize the biosimilar. While key patents have expired, JNJ delayed most biosimilar market entries until 2025, with Formycon's launch expected in early 2025. Despite intense competition, mwb research’s analysts consider FYB202 highly lucrative for Formycon, and success will depend on Fresenius Kabi’s sales performance. On unchanged estimates, the analysts confirm their PT of EUR 89.00 and reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

cyan published its H1 2024 report. cyan demonstrated a significant improvement in its financial performance, driven by robust revenue growth of 55.5%, supported by strategic partnerships and customer base expansion. Gross profit and EBITDA saw considerable gains, although the company is still operating at a loss. The disposal of the i-new business has allowed cyan to focus entirely on its cybersecurity business, positioning it for future growth. mwb research’s analysts maintain a positive outlook and continue to recommend a BUY rating with a price target of EUR 3.85. The full update can be downloaded under https://www.research-hub.de/companies/cyan%20AG

Verbio SE has announced its FY 23/24 (July 1 - June 30) results, which were slightly below market expectations (consensus: sales of EUR 1.7bn, EBITDA of EUR 124m) with reported sales of EUR 1.66bn and EBITDA of EUR 121m. As expected, these results were significantly weaker than last year, with revenues down 16%, mainly due to lower biodiesel prices caused by Chinese dumping practices. EBITDA was also down 50% yoy, impacted by both lower prices and the ramp-up of bioethanol production in the US. However, the strong yoy increase in sales volumes, particularly for bioethanol (+64% yoy), reinforces mwb research’s confidence that Verbio's strategic expansion into the North American market is on track. The analysts believe the company is well positioned to resume growth through its US operations while stabilizing its European especially biodiesel business. The analysts reiterate their BUY rating with a PT EUR 30.00. Verbio will hold its full-year earnings call today at 14:00 (MESZ). Register here: https://research-hub.de/events/registration/2024-09-26-14-00/VBK-GR. The full update can be downloaded under https://www.research-hub.de/companies/Verbio%20SE

Bauer AG is a global leader in advanced foundation engineering and resource exploration machinery. The company stands out through its integrated business model, combining proprietary equipment manufacturing with top-tier engineering services— delivering unmatched efficiency and quality control. The company’s impressive track record includes iconic projects like the Burj Khalifa and the Hong Kong-Zhuhai-Macau Bridge. In 2023, Bauer achieved a remarkable financial turnaround, driven by successful restructuring, debt reduction significantly, and a focus on sustainable technologies. As the effects of COVID-19, inflation, and high interest rates begin to ease, Bauer is well positioned for growth, particularly in high-demand regions like the Middle East and Asia, where large infrastructure initiatives are driving increased demand for its specialized services. Therefore, mwb research’s analysts initiate their coverage with a BUY recommendation with a PT of EUR 12.00, viewing Bauer as a compelling opportunity in the global infrastructure market. The full update can be downloaded under https://www.research-hub.de/companies/Bauer%20AG

Multitude SE demonstrated strong Q2 performance despite challenging macroeconomic conditions, with net interest income growing 7.1% yoy to EUR 54.6m. The company achieved significant EBIT growth, with margins improving to 30.6%, reflecting enhanced operational efficiency. A new EUR 80m bond issued in June provides stability, with a lower interest rate and refinancing secured until 2028. Management remains committed to achieving its 2024 EBIT and 2026 net profit targets, reaffirming confidence in the company's growth trajectory. Backed by a solid Q2 performance, mwb research’s analysts believe the company is well on track to achieve both short- and midterm targets. The analysts therefore confirm their BUY rating and their unchanged price target of EUR 13.20. The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE

Wolftank Group demonstrated exceptional growth in H1 2024, with sales doubling to EUR 62.0m. The Environmental Services segment was the primary driver, increasing 2.5-fold to EUR 41m, largely due to the strategic acquisition of Petroltecnica. Hydrogen & Renewables grew by 12.5% to EUR 10.8m, while Industrial Coatings & Maintenance tripled to EUR 10.2m. In terms of profitability, Wolftank made significant progress, with EBITDA nearly quintupling to EUR 4.8m and EBIT turning positive at EUR 1.4m. Operating cash flow rose substantially from EUR 1.2m to EUR 6.1m, demonstrating strong operational efficiency. The company's outlook remains positive, supported by a strong order backlog exceeding EUR 160m and favorable market conditions in the energy transition sector. mwb research’s analysts therefore maintain their BUY rating but reduce their PT from EUR 22.00 to EUR 20.00 as they incorporate higher amortization charges and minority interests. The full update can be downloaded under https://www.research-hub.de/companies/Wolftank-Adisa%20Holding%20AG

Amadeus FiRe AG is a leading German personnel services provider specializing in temporary staffing and training for finance and IT professionals. The company's competitive quality stems from its niche focus, strong market position, and more than 35 years of experience delivering high-quality solutions. This specialization allows for higher margins and comparably resilient to economic fluctuations. Amadeus FiRe has a track record of consistent profitability, double-digit margins, and high returns on capital. Growth expectations remain positive, with historical 10% annual growth and guidance suggesting similar future growth driven by structural changes and increasing demand for skilled professionals. The stock appears attractively priced, trading below long-term average multiples. Given its quality characteristics, consistent growth, and current valuation, Amadeus FiRe represents an appealing investment opportunity which is why mwb research’s analysts initiate with a BUY, PT EUR 117.00 offering a decent 25%+ upside. The full update can be downloaded under https://www.research-hub.de/companies/Amadeus%20FiRe%20AG

Since initiating coverage in July, CGRE AG (“CGRE”) has made notable progress, emerging as a significant player in the stock market after a reverse merger. Key developments include a successful capital increase of 4m shares, acquisition of a major stake in five real estate projects, and leadership changes, including the appointment of former EU Commissioner Günther H. Oettinger as Supervisory Board Chairman. At its August AGM, CGRE outlined its new strategy focusing on optimizing and acquiring real estate projects between EUR 20-100m with existing permits and financing, aiming for quicker returns. The company seeks to capitalize on the recovering German real estate market, which has improved after a downturn, leveraging its expertise to offer shareholders strong returns. mwb research’s analysts maintain their BUY rating with an unchanged PT of EUR 15.00 offering significant upside potential. The full update can be downloaded under https://www.research-hub.de/companies/CGRE%20AG

TUI has issued an upbeat pre-close trading update for FQ4 and reaffirmed its FY24 guidance of at least 25% underlying EBIT growth. The company's Markets & Airlines segment showed a robust performance, with bookings for Summer 2024 up 6% and average selling prices (ASPs) up 3%. In Germany, TUI benefited from the insolvency of FTI as the increased capacity was fully absorbed, leading to a 10% increase in bookings with no significant impact on ASPs. Bookings for Winter 2024/25 are also strong, up 7% overall, with ASPs up 5%. Cruises managed to maintain occupancy at 102% despite a 12% increase in available passenger cruise days in FQ4, driven by the launch of Mein Schiff 7. In H1 FY25, cruise capacity will increase by 14% with the launch of Mein Schiff Relax, while booked occupancy has slightly decreased due to itinerary changes caused by the unrest in the Middle East. Hotels & Resorts performed well, with available bed nights and occupancy both rising, alongside a 10% increase in average daily rates. Based on slightly upgraded estimates, mwb research’s analysts reiterate their BUY recommendation with a PT of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG