Nagarro’s Q3 2024 results reveal a mixed performance, with revenue growing 3.7% yoy to EUR 242.9m but showing a slight sequential deceleration from Q2. While key geographies like North America (+9.5% yoy) and Germany (+7.4% yoy) performed well, challenges in other regions and sectors, particularly in Horizontal Tech and Life Sciences, weighted on the overall performance. Adjusted EBITDA margins improved modestly to 14.3%, reflecting effective cost control. Despite this, the management expectations highlight continued demand uncertainty, though longer-term growth prospects remain anchored in secular trends. mwb research’s BUY rating and PT of EUR 102.00 are reaffirmed. The full update can be downloaded under https://www.research-hub.de/companies/Nagarro%20SE

AUTO1 Group witnessed robust momentum in Q3 2024, reporting the highest quarterly volumes, record-high gross profit, and adj. EBITDA. Revenue growth accelerated to 24% yoy to EUR 1.6bn in Q3 and beat consensus by 8% on 7% better-than-expected sales volumes. Gross profit was a solid 12% beat and adj. EBITDA of EUR 34m was twice the consensus. Gross profit per unit (GPU) continued to improve to an all-time high of EUR 1,059. On the back of strong momentum in Q3, management revised its guidance for FY24, now expecting volumes of 665k-679k units, gross profit of EUR 682m-700m and adj. EBITDA of EUR 72m-84m. Strong traction in volumes and GPU at both merchant and retail segments and upgraded guidance is highly encouraging. This indicates that AUTO1 is well on track to reach positive operating profit this year. After incorporating the new guidance, mwb research’s analysts confirm their BUY rating at a higher PT of EUR 12.00 (old: EUR 11.00). The full update can be downloaded under https://www.research-hub.de/companies/AUTO1%20GROUP%20SE

Siemens Energy reported a good set of Q4 FY 2024 results and met all its FY 2024 targets. Order intake during the quarter was robust at EUR 15.0bn (+42% yoy) and beat consensus (cons.) by a notable 23%. Revenues grew 17% yoy in Q4 and were in line. The adj. profit line (excluding special items [ex-SI]) came in at negative EUR 83m, better than the cons. expectation of a EUR 95m loss, on better-than-expected results at most segments. The Gas Service and Grid Technologies segments are performing strongly, and Transformation of Industry is gaining traction. Gamesa is showing encouraging signs of recovery and is expected to focus on the fast-growing offshore market. The company issued guidance for FY 2025 and unveiled its medium-term outlook until FY 2028, which point to high-single-digit to low-double-digit revenue growth and improving margins. After updating the estimates for the FY 2024 results and guidance, mwb research’s analysts confirm their HOLD rating on the stock at a revised target price of EUR 45.00 (old: EUR 37.00). The full update can be downloaded under https://www.research-hub.de/companies/Siemens%20Energy%20AG

MHP Hotel AG (MHP) reported strong KPIs for the third quarter, with revenues up 26% year-on-year to EUR 44.5m and an impressive organic growth rate of 16% (mwb est.). KPIs reached record levels across the board, with average daily rate (ADR) reaching EUR 229, occupancy at 82% and revenue per available room (RevPar) up 20% to EUR 189. Key drivers included UEFA Euro 2024 and high-profile concerts in Munich. MHP also successfully refinanced the Basel Marriott Hotel, in which it holds a 5% stake alongside private equity firm H.I.G. Capital. MHP reiterated its FY24 guidance of EUR 160m revenue and EUR 6m adjusted EBITDA. FY25 growth is supported by key trade fairs, US demand, the full-year contribution from the Koenigshof and the expected summer opening of the Conrad Hamburg. mwb research’s analysts reiterate their BUY recommendation with a price target of EUR 3.00. The full update can be downloaded under https://research-hub.de/companies/MHP%20Hotel%20AG

Multitude reported strong Q3 results, with steady net interest income of EUR 53.6m (+1.1% yoy) and impressive 15pp yoy improvement in EBIT margin, driven by high organic growth in topline across all segments and remarkable improvement in risk management. Founder Jorma Jokela will step down as CEO, with Antti Kumpulainen set to take over in January 2025 to further drive operational growth in hopes of reaching EUR 1bn market cap by 2028. Committed to creating shareholder value, the company announced a new share buyback program of up to 200,000 shares for EUR 1m. On top of that, Multitude reaffirmed its FY24-26 guidance, In light of the continuing upward momentum, mwb research adjusted its estimates slightly and reiterate its BUY rating with an unchanged PT of EUR 13.20. The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE

Friedrich Vorwerk Group (FVG) released its Q3 24 results, confirming preliminary figures with sales of EUR 145m, up 32.4% yoy, and EBIT of EUR 19.8m, corresponding to a robust margin of 13.7%. The sales growth was mainly driven by the expansion of production capacity. Q3 order intake was softer at EUR 108.8m and 9M 24 order intake was also down 48.8% due to a high comparable base. However, with an order backlog of EUR 1.18bn, more than double FY24 sales, the softer order intake should not be a concern for growth. In addition, FVG announced a significant new order in the high double-digit millions from the EWA natural gas pipeline, which could signal a new order momentum in the Natural Gas segment. In view of these results, mwb research’s analysts reiterate their BUY rating and maintain their PT of EUR 36.00, which the analysts raised following the primary results. The full update can be downloaded under https://www.researchhub.de/companies/Friedrich%20Vorwerk%20Group%20SE

Westwing has announced a public tender offer to repurchase up to 1,200,000 shares at EUR 8.25 each, totaling approximately EUR 9.9m from November 12 to December 10, 2024. This larger-scale buyback departs from previous, more modest market-based buybacks. With a current cash balance of EUR 63m as of Q3 2024 and a negative free cash flow of EUR -9.3m over the first nine months, this buyback signals management’s confidence in the company’s planned cash flow improvements and premium positioning strategy. However, the tender offers a modest premium, investors who share mwb research’s positive long-term view might prefer to keep their shares for potentially higher gains. The analysts maintain their PT of EUR 9.50 and reiterate to BUY. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20SE

Mister Spex reported mixed results for Q3 24, with total revenues down 3% y-o-y to EUR 57.8m. The decline was primarily due to a 17% drop in international sales following the closure of international stores as part of the SpexFocus restructuring program. However, the core German market showed resilience with 2% growth, driven by a 5% increase in high-margin prescription eyewear sales. As a result, gross margin improved by 302bp to 48.8%, despite lower total sales, also supported by reduced discounting. Adjusted EBITDA was EUR -1.4m, mainly due to restructuring costs. The company maintained its FY24 guidance of EUR 210-230m in revenues and an adjusted EBITDA margin between -4% and +1%. Cash reserves decreased to EUR 81.6m and additional restructuring costs are expected in Q4. mwb research’s analysts reiterate their BUY rating with a new PT of EUR 5.00 (old EUR 6.20) as they further adjust their estimates. However, the analysts remain confident that Mister Spex's strategic focus on the German market and high-margin products will drive future growth and profitability. The full update can be downloaded under www.research-hub.de/companies/Mister%20Spex%20SE

Bayer reported weak numbers in Q3 2024. Sales declined by 4% yoy to EUR 10.0bn (+0.6% yoy currency- and portfolio-adjusted [c.p.]) in Q3, coming in 1% below consensus. While pricing trends were sustained at c.+2% yoy, volumes fell 1% yoy and FX remained a dampener. Adj. EBITDA declined 26% yoy to EUR 1.25bn, missing consensus by 5%, and the margin deteriorated 3.7ppt yoy to 12.6%. Profitability was impacted by softer results in the pharma division, due to weaker performance in the high-margin Xarelto product line. While management confirmed its FY 2024 guidance for sales growth at -1% to +3% yoy c.p., it now guides for 8%-11% yoy drop in adj. EBITDA (vs 3%-9% yoy decline previously), due to reduced market dynamics in the agricultural business. For FY 2025, management expects subdued top-line development with likely declining earnings. Despite multiple challenges, Bayer could still offer an attractive long-term investment opportunity. Recent positive rulings related to litigations and initiatives could lead to a partial de-risking, and consequently, a re-rating, of the stock. mwb research’s analysts reiterate their BUY rating with a lower PT of EUR 31.00. The full update can be downloaded under https://www.research-hub.de/companies/Bayer%20AG

Cancom reported modest Q3 revenue growth of 1.6% yoy to EUR 423m, driven by stable demand in Germany but offset by declining international sales. Gross profit increased by 6.4%, with a higher gross margin of 40.7%, although rising costs led to an 11.4% drop in EBITDA to EUR 31m. Due to market uncertainties and political factors, Cancom revised its FY24 guidance, now forecasting revenue between EUR 1,650m and EUR 1,750m and EBITDA between EUR 112m and EUR 130m. Despite short-term pressures, the company remains focused on long-term growth through digital transformation, which is why mwb research’s analysts reiterate their BUY rating with a lowered price target of EUR 28.50 (old EUR 37.20). The full update can be downloaded under https://www.research-hub.de/companies/Cancom%20SE