Sartorius’ Q2 24 results were muted as cautioned by management, and revenues, and adjusted EBITDA came broadly in line with consensus. Order intake trends suggest that demand has not stabilized or gained any meaningful positive momentum yet. Revenues in Q2 grew at a modest 4% yoy in c.c.; however, this was not sufficient to cover cost growth, resulting in a 3% yoy drop in adjusted EBITDA. Overall, customer order sizes are shrinking, and investment decisions are being delayed or postponed. Due to the uncertain demand environment, management slashed its guidance for 2024, now expecting revenues to be flat and the underlying EBITDA margin to hover c. 27%-29% (vs slightly above 30% earlier). mwb research’s analysts continue to believe that the pandemic has created pull-forward effects that will lead to a saturation of global laboratory capacities for the foreseeable future. The analysts also increasingly believe that the 30%+ margins were a one-off effect of the pandemic. If this proves to be the case, mwb research sees further downgrade potential. For now, the analysts adjust their estimates, anticipate the guidance and arrive at a new price target of EUR 173.00 (old EUR 210.00) – mwb research’s analysts downgrade from HOLD to SELL. The full update can be downloaded under research-hub.de/companies/Sartorius%20AG

VARTA announced that it will continue its restructuring in accordance with the German Corporate Stabilization and Restructuring Act (StaRUG). Negotiations with creditors and potential investors, including major shareholder DDr. Tojner and Dr. Ing. h.c. F. Porsche AG, have resulted in two proposals to provide liquidity and reduce debt. These include a capital reduction and the issuance of new shares, effectively expropriating current shareholders without compensation, and the delisting of VARTA shares. The company, burdened with EUR 1bn in gross debt and significant losses, faces a challenging market and competitive environment, making restructuring essential to its survival. The measures may circumvent the 75% shareholder approval requirement under StaRUG. Therefore, mwb research’s analysts do not recommend investors to get involved in the battle for the alleged residual value of the company and maintain their SELL with a new PT of EUR 0.00 (previously EUR 7.00). The full update can be downloaded under https://www.research-hub.de/companies/research/Varta%20AG

TAKKT AG's preliminary Q2 2024 results highlight persistent macroeconomic challenges, with a 19.0% yoy decline in turnover to EUR 260m. The adjusted EBITDA margin fell to 6.6% from 9.0% in the previous year, burdened by EUR 4.1m in one-off expenses. While the Industrial & Packaging and Office Furniture & Displays divisions maintained stable performance, the FoodService division saw a significant decline, with sales dropping 28% due to integration challenges with the Hubert and Central brands. Consequently, now expecting organic revenue growth to decline by 12-17% and the adjusted EBITDA margin to be 7.3-8.3%. The potential for impairment in the FoodService division remains a key risk in the view of mwb research’s analysts. The experts maintain their HOLD rating with new PT of EUR 11.00 (previously EUR 13.00). The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Suss MicroTec reported strong sales growth in Q2 with revenues of EUR 99.3m, up 45% yoy and 6% qoq, beating market expectations by 5% and most likely driven by temporary bonders used in AI chip production. Q2 order intake was in line with expectations at EUR 93.9m. The gross margin improved to 40.5% and the EBIT margin was 15.3%. Following the strong Q2 results, Suss MicroTec has significantly raised its guidance for FY24: the company now expects revenues in the range of EUR 380m to EUR 410m (up 11% at the midpoint), a gross margin between 38% and 40% (up 250bp at the midpoint) and an EBIT margin between 14% and 16% (up 400bp at the midpoint). Recent geopolitical tensions, which have weighed on the stock, seem to pose only limited risks for Suss MicroTec. As a result, mwb research’s analysts upgrade their estimates and arrive at a new price target of EUR 72.00 (old: EUR 55.00). Upgrade to BUY (old: HOLD). The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

Bechtle has been forced to update its guidance due to Q2 FY24 growth fell significantly short of expectations, with business volume increasing by only 1% to EUR 1.83bn and revenue dropping by 2%. The shortfall is attributed to a reluctance to invest, particularly among SMEs, and weak public-sector business, resulting in an EBT of EUR 83m and an EBT margin of 5.6%. The company has introduced cost-saving initiatives and a hiring freeze to mitigate lower sales volumes. Despite these efforts, no signs of recovery are expected in H2, and performance for FY24 is projected to be stable compared to the previous year. The updated outlook has led to a new price target of EUR 55.00, down from EUR 59.00, with a maintained BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

Rigsave's shares have been readmitted to trading on the Frankfurt Stock Exchange last week. Both the suspension and the reinstatement to trading were made without giving reasons or details. For mwb research’s analysts, however, this is a reason to re-evaluate the investment case, taking into account the published 2023 figures and the news flow on 17 won mandates, which, according to the company, should increase revenues to EUR 43m by 2026. The analysts have incorporated all the information and updated their estimates and valuation. mwb research calculates a new price target of EUR 35.00 and reiterates to BUY. The full update can be downloaded under https://www.research-hub.de/companies/Rigsave%20S.p.A.

ZEAL is the No.1 online broker of lottery products in Germany, with a market share of around 42% and around 1.33m monthly active users. With a diverse product portfolio, including state lotteries, social lotteries, and games, ZEAL offers an excellent user experience on web and mobile platforms. The company has already shown significant growth, increasing its market share from 12% in 2013 to around 42% in 2024, driven by digitalization and demographic changes, efficient customer acquisition, and strategic acquisitions like Lotto24. The lottery market's shift from offline to online is expected to continue, with penetration rising from 24% in 2024 to around 40%-50% in the future, benefiting ZEAL’s core business. Innovative products such as social lotteries and the rollout of games have a huge potential if scaled successfully. mwb research’s analysts expect ZEAL to grow its revenue around 16% CAGR over the next three years. Currently, the company is undervalued based on mwb research’s DCF model with a 46.7% upside potential. Thus, mwb research’s analysts initiate their coverage with a BUY recommendation and a PT of EUR 55.00. The full update can be downloaded under https://www.research-hub.de/companies/ZEAL%20Network%20SE

Lanxess reported a strong second quarter with an adjusted EBITDA of EUR 181m, well above the consensus of EUR 137m. The good result was driven by higher capacity utilization and successful cost saving programs, and achieved despite mixed volumes, with slight increases in some industries but continued weak demand in agrochemicals and construction. Lanxess expects Q3 adjusted EBITDA to be close to or in line with Q2 and confirms its FY24 guidance of 10-20% adjusted EBITDA growth. While the recovery in the chemical industry is still muted, normalized inventories are now removing a major drag on the business. Combined with cost measures that are taking effect, further improvements for Lanxess should be possible. mwb research’s analysts reiterate their BUY recommendation with a price target of EUR 30.00. The full update can be downloaded under https://www.research-hub.de/companies/Lanxess%20AG

Rubean reported impressive growth in H1 2024, with revenues increasing by over 340% to EUR 840k compared to H1 2023. This represents 83% of the entire 2023 revenue in just six months. The launch of Commerz-GlobalPay in Germany using Rubean's SoftPOS solution is expected to drive significant future growth. Management has confirmed its 2024 revenue guidance of EUR 2.2-2.5m, an increase of ~140% year-on-year. Rubean's unique SoftPOS solution, which turns smartphones into payment terminals and is the only one approved for girocard payments in Germany, gives the company a competitive edge. The company is approaching break-even as it scales its business and capitalizes on partnerships with major financial institutions. Reiterate BUY, PT EUR 12.00. The full update can be downloaded under https://www.research-hub.de/companies/Rubean%20AG

Daimler Trucks reported weak preliminary Q2 results. The company reported a preliminary Q2 adjusted EBIT of EUR 1.17bn (10.2% EBIT margin), below the consensus estimate of EUR1.26 billion. In particular, the important European business is suffering with an adjusted EBIT 25% below consensus, but Asia is also burdened with a negative adjusted EBIT of EUR -82m vs. consensus of EUR 48m, and there was an additional onetime full write-off of EUR 120m from the China joint venture, which pushed the unadjusted EBIT margin down to 9.3%. In the most important Americas business, the adjusted EBIT came in above consensus at 14.4%. However, given the limited visibility, especially in the European markets, mwb research’s analysts believe there could be negative surprises and adjust their FY2024 estimates downwards. Therefore, they lower their price target to EUR 42.00 (before: EUR 44.00) but reiterate their BUY rating. The full update is available at https://www.research-hub.de/companies/Daimler%20Truck%20Holding%20AG