Infineon's Q3 sales of EUR 3.7bn missed guidance by EUR 100m, but was in line with mwb research’s expectations. However, the Group's adjusted EBIT beat consensus by c. 8%. Q3 results still reflect a challenging economic environment and weak chip demand, with a significant decline in order backlog. As a part of its cost saving program, Infineon plans to cut 2.4% of its global workforce and relocate another 2.4% to lower-cost countries. The company narrowed its full-year guidance downward to EUR 15bn in revenues and unchanged 20% segment margin. The company expects a quarterly improvement in Q4. As a result, mwb research’s analysts slightly increase their sales estimate, maintain their price target of EUR 40.00 and reiterate their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Infineon%20Technologies%20AG

United Internet published prelim. Q2/H1 2024 results on Friday after market close showing continued growth in customer contracts and moderate revenue increase. Q2 revenue rose 2.6% yoy to EUR 1.53bn, whereas EBITDA slightly decreased to EUR 323m, impacted by increased expenses for 1&1 mobile network expansion. EBIT declined more significantly due to higher depreciation and amortization costs. The company moderately, updated its FY24 forecast, now expecting sales of EUR 6.4bn (-1.5% delta vs. previous forecast) and EBITDA of EUR 1.38bn (-3%). This adjustment is primarily due to a temporary 1&1 mobile network outage in May, leading to increased contract terminations. To meet the updated guidance, United Internet anticipates stronger H2 performance, with moderate top-line growth of 3.6% yoy and EBITDA growth of about 10% yoy. We reiterate our BUY rating with unchanged PT of EUR 28.00. The full update can be downloaded https://www.research-hub.de/companies/United%20Internet%20AG

Verbio operates biorefineries that convert biomass into various biofuels like biodiesel, bioethanol, and biomethane, along with a range of chemicals, providing greater production flexibility compared to many smaller competitors. Benefiting from Europe's push for climate-friendly energy, Verbio saw significant sales and margin growth in FY2022. However, rising feedstock costs and falling bioenergy prices, exacerbated by Chinese biofuel dumping, have recently pressured the market. The EU has investigated the situation and will introduce new tariffs in August 2024. Increased government biofuel quotas for oil companies and Verbio's expansion into the US are expected to drive double-digit growth and improved margins by FY2026. With a strong financial position and experienced management, Verbio is well prepared to weather market volatility. mwb research’s analysts recommend to BUY with a PT of EUR 30.00, offering a 96.5% upside. The full update can be downloaded under https://www.research-hub.de/companies/Verbio%20SE

Symrise reported good set of numbers in Q2 and H1 24. While organic (org.) sales growth remained strong at 12% yoy in Q2, negative currency effects (-4%) slowed the momentum of reported top-line to 8% yoy to EUR 1.3bn (in line with consensus). As expected, profitability continued to improve. EBITDA of EUR 530m in H1 (in line) translated to 12% yoy growth, supported by controlled input costs and savings from its efficiency program. Management reiterated its outlook for FY24 and reaffirmed its long term growth and profitability targets. Despite impressive organic growth, mwb research’s analysts reiterate their SELL rating with a price target of EUR 90.00, supported by the stand-alone and comparable valuation. Moreover, maintaining a conservative guidance (org. sales growth target of 5-7% in FY24 vs +12% yoy in H1) is unlikely to enthuse investors. The full update can be downloaded under https://www.research-hub.de/companies/research/Symrise%20AG

MTU reported an impressive set of numbers in Q2 2024. Although revenue growth of 12% yoy to EUR 1.8bn slightly missed consensus by 1%, adj. EBIT beat both mwb est. and consensus by a wide 13%-14%. Adj. EBIT grew 31% yoy, with the margin improving 210bps yoy to 14.4%, bolstered by a favorable revenue mix in the engine business, lower material intensity in Geared Turbofan MRO, and recovering spare parts sales. Notably, organic revenue growth in the spare parts business was in the mid-single-digit % range (in USD) in H1 (vs -5% yoy in Q1). MTU’s order backlog was strong at EUR 25.2bn at endQ2. Given good business progress so far and gradually easing supply situation, management maintained its FY 24 revenue guidance at EUR 7.3bn-EUR 7.5bn, while it slightly increased its adj. EBIT margin outlook to c.13% from over 12% earlier. mwb research’s analysts continue to hold a constructive view on MTU, as its long-term growth prospects remain strong, supported by a solid commercial aircraft backlog and strong MRO and aftermarket demand. mwb research’s analysts raise their estimates and reiterate their BUY rating, with a revised price target of EUR 290.00 (old: EUR 278.00). The full update can be downloaded under https://www.research-hub.de/companies/MTU%20Aero%20Engines%20AG

Hugo Boss published detailed Q2 2024 figures that were in line with its weak preliminary release. Sales declined 1% yoy to EUR 1.02bn, slightly below consensus. However, EBIT plunged 42% yoy to EUR 70m, missing consensus by a wide 33%, due to softer sales and strategic investments. Macro uncertainties and the muted demand environment, especially in the UK and China, are expected to impact the rest of 2024. Against this backdrop, Hugo Boss had recently cut its full-year outlook, which it now confirmed. It now forecasts a 1%-4% yoy sales increase and EBIT of EUR 350-430m. The company plans to focus on fixed cost control and sourcing efficiency to support profitability in H2. The impact of these measures will be closely monitored by investors. mwb research’s analysts retain their recently lowered forecasts, and the price target remains unchanged at EUR 68.00. Yet, valuations remain cheap and the analysts reiterate their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/research/Hugo%20Boss%20AG

AUTO1 Group reported strong set of numbers in Q2 2024, once again beating consensus on all parameters. Revenues, volumes, gross profit, and gross profit per unit (GPU) were 8%, 6%, 13%, and 7% ahead of consensus, respectively, while adj. EBITDA of EUR 21m outperformed by EUR 12m. The better-than-expected print was driven by healthy recovery in volumes (overall: +17% yoy) at both its merchant and retail segments. Average selling prices, though still soft yoy by c.4%, improved 3% sequentially. AUTO1 made material progress in terms of profitability, with its gross profit increasing 36% yoy and gross profit per unit (GPU) up 16% yoy to a record-high EUR 1,041, on best-ever GPUs at both its merchant and retail segments. Given healthy progress in H1, the company revised its gross profit and adj. EBITDA guidance and raised the lower end of its volume forecast. mwb research’s analysts believe that AUTO1 will continue to improve its efficiency and reach its profitability goals. The analysts tweak their estimates for the revised guidance and confirm their BUY rating at a new PT of EUR 9.00 (old: EUR 8.00). The full update can be downloaded under https://www.research-hub.de/companies/AUTO1%20GROUP%20SE

Siemens Healthineers AG’s (SHL) Q3 24 results were reasonable, though revenues and adj. EBIT missed consensus by 2% and 4%, respectively. The top-line grew 4.3% yoy organically (org.) and 10.1% yoy org., ex-antigen business, while the adj. EBIT margin improved by 60bps yoy to 15.2% on cost savings from the Diagnostic segment’s transformation program. Order bookings were healthy with a book-to-bill ratio of 1.07x and management is optimistic of revenues and order bookings in China stabilizing in Q4. Despite lowering the org. revenue growth guidance for the Imaging segment, management reiterated its overall FY24 guidance. mwb research believes the medical technology market is set to recover in FY 25 after years of negative impacts. Against this backdrop, reasonable revenue growth on a more normalized base gives the confidence that the company is on track to achieve its long-term targets of mid-to-high single-digit revenue growth and double-digit adj. EPS growth. The analysts reiterate the BUY rating at an unchanged price target of EUR 62.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Siemens%20Healthineers%20AG

Krones continued to witness positive momentum in Q2 24. Revenues grew 17% yoy to EUR 1.31bn (in line with consensus), led by 12% yoy organic growth and further supported by Netstal consolidation. Encouragingly, as at end Q2, Krones had a sizeable order backlog of EUR 4.4bn (+6% vs end-2023), adequate to support high-capacity utilisation beyond mid-2025. Meanwhile, profitability was well supported by positive pricing actions and a better mix, which took the Q2 EBITDA up 23% yoy to EUR 131m (in line) and the margin higher by 50bps yoy to 10.0%. mwb research’s analysts remain constructive on Krones’ growth prospects. As a market leader with a 25% global share, Krones is poised to benefit from the growing beverage industry. Its strong market position, diverse product range, and sustainability focus are expected to drive above-average growth. With a solid financial position, Krones remains a promising investment. The analysts reiterate their BUY rating with a revised PT of EUR 145.00 (old EUR 142.00). The full update can be downloaded under https://www.research-hub.de/companies/research/Krones%20AG

As already announced with preliminary figures, Daimler Truck reported weak Q2 figures, with revenue declining by 4% yoy and adjusted EBIT dropping by 18% yoy. In Q2, Daimler Truck encountered increased challenges in key regions, particularly in Europe and Asia. There was a significant decline in order intake, and DTG downgraded its FY24 outlook due to an expectation of a decline in unit sales. mwb research’s analysts adjust FY24 estimates down. Following the downgrade of the price target to EUR 42.00 on 17 July, mwb research’s analysts now confirm this target and reiterate to BUY. The full update is available at https://www.research-hub.de/companies/Daimler%20Truck%20Holding%20AG