In line with prelims, Koenig & Bauer (SKB) published its Q2 24 figures lower than the prior year due to the persistent challenging market environment. SKB's revenue declined 11.6% yoy to EUR 279m in Q2, slightly below the consensus of EUR 290m. Moreover, expected one-off expenses of approx. EUR 10m (in connection with the Drupa trade fair) and reduced order intake in the Sheetfed segment in Q3 23 weighed on Q2 24 results, as SKB's Q2 24 loss per share spiraled to EUR 1.98 vs. EUR 0.31 in Q2 23. The company reaffirmed its FY 24 outlook, with EBIT coming in at the lower end of the forecasted range of EUR 25-40m in FY24 (excluding the one-off item of Dupra spending of EUR 10m) and revenue of around EUR 1.3bn despite the difficult market situation. It should be noted that SKB expects a solid H2 regarding sales and earnings. Importantly, with the substantial order backlog and the expected benefits of the Spotlight program, SKB is on track to meet its targets for FY 24. BUY, PT EUR 18.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG

Nemetschek (NEM) reported detailed Q2 2024 numbers that were in line with its preliminary release. Revenues were up 9.7% yoy to EUR 227.7m on strong traction in subscription/SaaS-based revenues, that surged 82.9% yoy to EUR 124.6m. Consequently, the share of recurring revenues in the overall revenue mixed edged higher to its targeted 85% mark. Although the reported EBITDA margin was stable yoy at 27.0%, impacted by GoCanvas’ M&A-related one-offs, the underlying margin improved 2.4ppt yoy to 29.4%. Moreover, the underlying EBITDA margin of 30% in H1 24 clearly indicates that NEM’s operating business is therefore well on track and the growth drivers in the company’s global markets are proving their resilience. The recently updated 2024 guidance including GoCanvas, was confirmed – revenue growth of 13%- 14% yoy (organic: +10%-11% yoy) and an EBITDA margin of 29%-30% (organic: 30%- 31%). GoCanvas is value-accretive and aligned with NEM's strategy to provide advanced cloud and mobile solutions. It is expected to significantly boost growth and recurring revenues. mwb research’s estimates already reflect the acquisition impact. The analysts maintain their price target at EUR 88.00 and reiterate their HOLD recommendation on the stock. The full update can be downloaded under https://www.research-hub.de/companies/research/Nemetschek%20SE

TeamViewer's (TMV) reported a robust Q2, with revenue growing by 6% yoy to EUR 164.1m, driven by a 19% increase in the Enterprise segment. Profitability improved significantly, with adjusted EBITDA up 6% to EUR 67.5m and EBIT rising 17% to EUR 45.9m. Strong demand from large customers and recognition as a market leader in connected worker platforms underscore the company's relevance in digital transformation. Despite macroeconomic challenges, TMV remains confident in achieving its FY24 guidance, with projected revenues between EUR 660m and EUR 685m and an adjusted EBITDA margin of at least 43%. However, mwb research’s analysts expect the lower end of the guidance range and note that H2 24 will need to be even stronger than H1 to achieve the FY targets. Therefore, the analysts remain cautious, keep their estimates unchanged and confirm their PT of EUR 15.00. BUY. The full update can be downloaded under https://www.research-hub.de/companies/research/TeamViewer%20AG

INDUS has revised its revenue and EBIT guidance for FY24 due to unfavorable macroeconomic conditions and lower expectations from its portfolio companies for H2'24. The company now expects revenues of EUR 1.7-1.8bn, down from EUR 1.85- 1.95bn, and EBIT of EUR 125-145m, down from EUR 145-165m. The EBIT margin is now expected to be 7-8%, down from 7.5-8.5%. This represents an 8% reduction in revenue and a 13% reduction in EBIT at the mid-point. However, INDUS maintains its FY24 FCF guidance of over EUR 110m, which mwb research’s analysts see as a strong signal of the company's cash generating ability. INDUS will publish its H1 results on August 13, which are expected to be in line with the market and mwb research’s expectations. The experts reiterate their BUY rating, but adjust their estimates to reflect the lower earnings expectations and the challenging operating environment. The price target is now EUR 35.00 (previously EUR 40.00). The full update can be downloaded under https://www.research-hub.de/companies/INDUS%20Holding%20AG

KION Group reported a solid set of results for the second quarter, with revenue in line at EUR 2.88bn (+1.4% yoy) and adjusted EBIT above consensus estimates at EUR 220m. The company's performance was driven by higher selling prices, material price stability in ITS, efficiency measures in SCS and growth in high-margin services. However, order intake remained subdued at EUR 2.64bn, down 8% yoy. KION has narrowed its FY24 revenue and adjusted EBIT guidance, with the midpoint pointing to flat revenue and slightly lower margins in H2 vs. H1. mwb research’s analysts refine their estimates, resulting in an unchanged price target of EUR 46.00 and reiterate their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Kion%20Group%20AG

Redcare Pharmacy (RDC) published detailed Q2 2024 numbers, with sales broadly in line with preliminary release. Total sales increased 33.5% yoy in Q2 on healthy growth of 20.9% yoy in non-prescription (non-RX) sales. Most notably, reflecting the strong adoption of CardLink, RDC’s e-Rx platform, the momentum of Rx sales saw a sharp uptick in Q2, growing 36.6% yoy organically. On the profitability front, a decline in gross margin, caused by an adverse mix, was largely offset by a controlled selling and distribution cost margin, resulting in a narrower decline of 50bps in the adj. EBITDA margin to 2.7%. Moreover, despite increased marketing efforts to leverage e-Rx opportunities, management maintained its full-year guidance for an adj. EBITDA margin of 2-4%. Given the good progress so far, and citing dynamic e-Rx sales, management left its sales guidance unchanged for 2024, expecting EUR 2.3-2.5bn in sales (+30%-40% yoy). The promising launch of CardLink reflects RDC’s potential to unlock significant growth in the German e-Rx market. mwb research raise their estimates, taking the price target to EUR 145.00 (old: EUR 120.00). The analyst’s rating remains HOLD. The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

Fuchs Q2 2024 results were uninspiring amid overall lower prices and unfavorable currencies, although volumes grew 3% yoy and prices have seen gradual improvement in Asia Pacific and North America. Reported sales remained flat yoy, supported by 1% yoy organic growth, slightly missing consensus by 1%. However, cost-control measures and lower energy and freight costs supported profitability. EBIT grew 14% yoy and the margin improved 1.6ppt yoy to 12.5%. Management is hopeful of a modest recovery in volumes in H2 amid macro challenges and confirmed its conservative guidance for the year – revenues of c. EUR 3.6bn (+2% yoy) and EBIT of EUR 430m (+4% yoy), implying a margin of 11.9% (+20bps yoy. Fuchs has a highly diversified customer and product base and the ability to deliver return on capital, which is more than twice its cost of capital even in difficult markets. However, the company serves a largely mature market, with limited scope for high growth. mwb research’s analysts broadly retain their estimates and retain their price target at EUR 48.00. Following recent share price weakness (-9% over the past 1 month), the price target implies an upside of 20% over the current market price. The analysts upgrade their rating to BUY. The full update can be downloaded under https://www.research-hub.de/companies/Fuchs%20Petrolub%20SE

Vossloh has signed an agreement to acquire Sateba Group, a leading European manufacturer of concrete ties, expanding its product portfolio and market presence in Europe. The acquisition aligns with Vossloh's strategic goals, enhancing its system competence for rail tracks and positioning it as a global leader in concrete tie manufacturing. The EUR 450m deal will be financed through a mix of debt and a potential 10% capital increase. The transaction is expected to be value-accretive in the long-run for shareholders, strengthening Vossloh's market position and profitability. However, the price paid looks a bit excessive in comparison to Vossloh’s own valuation. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 57.00, leaving their estimates unchanged until the transaction closes, which is anticipated by spring 2025. The full update can be downloaded under https://www.research-hub.de/companies/research/Vossloh%20AG

mwb research’s analysts initiate coverage of HENSOLDT AG with a BUY recommendation and a PT of 44.00 offering an upside potential of 26.9%. Hensoldt, a key player in Europe's defense sector, specializes in defense electronics and sensor solutions. With NATO defense budgets rising amid heightened geopolitical tensions, Hensoldt is poised for substantial growth. European nations like Germany and France are intensifying their defense modernization efforts, presenting robust long-term opportunities. Notably, EU defense expenditures are outpacing those of the US, bolstering Hensoldt's revenue potential. Upcoming elections across NATO member states could further support defense spending, providing a significant top-line boost. Hensoldt emerges as a compelling investment opportunity among defense stocks, supported by favorable valuations and promising growth prospects compared to the peers. The full update can be downloaded under https://www.research-hub.de/companies/Hensoldt%20AG

Stabilus reported weak Q3 FY 24 results on an organic (org.) basis, as the business continued to be impacted by the sluggish demand environment and customer call-offs. Revenues declined 2.5% yoy organically, while org. adj. EBIT was down disproportionately by 21.5% yoy amid inflationary pressure and under absorption of fixed costs, due to lower volumes. However, the first-time consolidation of Destaco (revenues: EUR 48.8m; EBIT: EUR 9.7m) supported the reported numbers with revenues increasing 14.4% yoy to EUR 351m (2% better than consensus) and adj. EBIT increasing 2.9% yoy EUR 43m (a 4% beat). Management has observed only a slight recovery in demand and hence, reiterated its dull FY24 guidance, expecting revenues of EUR 1.3bnEUR 1.35bn (FY 23: EUR 1.2bn) and an adjusted EBIT margin of 11.7%-12.3% (FY 23: 13.0%). This includes Destaco’s contribution for 6 months. The global economic weakness and ongoing automotive industry issues have significantly impacted Stabilus. With no signs of recovery in sight, mwb research’s analysts broadly maintain their estimates and maintain their price target at EUR 62.00, which still gives an upside of 41% over the current market price. The rating remains at BUY. The full update can be downloaded under https://www.research-hub.de/companies/Stabilus%20SE