Delivery Hero faces a potential fine exceeding EUR 400m from the European Commission for anti-competitive practices. The EU alleges that Delivery Hero and Glovo, a subsidiary acquired in 2022, divided markets, exchanged sensitive information, and had entered into no-poach agreements. This follows unannounced EU inspections in 2022 and 2023. Delivery Hero had been an investor in Glovo for years before the acquisition, and their footprints complemented each other. While Delivery Hero has previously made general statements about the investigation, the large provision suggests caution. Nevertheless, the company has the financial capacity to pay the fine. On reduced PT of EUR 47.00 (old. EUR 52.00) mwb research’s recommendation remains BUY. The full update can be downloaded under https://www.research-hub.de/companies/Delivery%20Hero%20SE

Aixtron's preliminary Q2 results were mixed, with revenues of EUR 132m in line with expectations despite a 24% yoy decline, while EBIT missed expectations, most likely due to product mix and higher R&D spending. Aixtron has lowered its FY24 guidance and now expects revenues in a range of EUR 620m to EUR 660m (down 5% at the midpoint), a gross margin of around 43% to 45% (unchanged) and an EBIT margin of around 22% to 25% (previously 24% to 26%). Overall, this points to a year of slow or even zero or negative growth for the business. However, Q2 saw a strong rebound in order intake, driven by significant demand for silicon carbide (SiC) and gallium nitride (GaN) equipment, indicating good growth prospects for FY25. mwb research’s analysts adjust their growth forecast and arrive at a new price target of EUR 29.00 (from EUR 33.00) and reiterate their BUY rating, supported by structural growth drivers and strategic capacity expansion in Italy. The full update can be downloaded under https://www.research-hub.de/companies/AIXTRON%20SE

Varta announced that Porsche intends to acquire its electric car battery business, specifically its V4Drive subsidiary. The companies are negotiating a majority stake deal, having signed a non-binding letter of intent. The plan includes spinning off V4Drive, with Porsche participating through a capital increase. Financial details were not disclosed, and the deal depends on various factors, including a thorough review. Porsche aims to produce 10-20 gigawatt hours of battery cell capacity annually. Varta faces financial difficulties, with approximately EUR 1 billion in debt and a cyber-attack delaying its FY23 results. The potential deal with Porsche could be beneficial, but challenges and uncertainties remain, leading us to reiterate our SELL rating with unchanged PT of EUR 7.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Varta%20AG

Krones hosted a Capital Market Day, highlighting its performance, strategy, and future prospects. The company has grown steadily, with sales increasing from EUR 2.2bn in 2007 to EUR 4.7bn in 2023 and improved EBITDA margins. As a market leader with a 25% global share, Krones is poised to benefit from the growing beverage industry, expected to expand by 3% annually through 2028. The company's strong market position, diverse product range, and sustainability focus are expected to drive above average growth. Krones aims for sales of EUR 7bn by 2028, an EBITDA margin of 11- 13%, and a ROCE of over 20%. With a solid financial position, Krones remains a promising investment, which is why mwb research’s analysts reaffirm their BUY rating and PT of EUR 142.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Krones%20AG

123fahrschule has significantly advanced its market position by acquiring FOERST GmbH, a leader in driving simulation technology, and financing the transaction through a share issue. This acquisition aligns with 123fs's goal of revolutionizing driver training through digital innovation. The purchase price of EUR 400-600k (mwb est.) will be paid in shares, conserving cash resources while reflecting the sellers' confidence in the future of 123fs. The integration of FOERST’s technology is expected to improve training efficiency, reduce costs, and enable new business models like a SaaS offering. Despite the share issue, mwb research’s valuation remains unchanged, and the analysts maintain a BUY rating with a target price of EUR 6.80. The full update can be downloaded under https://www.research-hub.de/companies/research/123fahrschule%20SE

Redcare Pharmacy (RDC) published preliminary sales figures for Q2 24, with total sales increasing 33.3% yoy to EUR 560m in the quarter. The core non-prescription (non-Rx) business remained healthy, as non-Rx sales grew at a steady 20.7% yoy to EUR 390m. Most notably, the momentum of Rx sales picked up considerably in Q2 following a weak performance in Q1. Highlighting strong adoption of CardLink, RDC’s e-Rx platform, Rx sales grew organically by 36.6% in Q2, which marked a strong acceleration up from +6.8% in Q1 2024. Despite increased marketing spend, RDC’s management expects to maintain their full-year guidance for an adj. EBITDA margin of 2-4%. The promising launch of CardLink reflects the potential to unlock significant growth in the German eRx market, which confirms mwb research’s view that the market reaction following Q1 prelims was exaggerated. mwb research’s analysts are raising their estimates slightly, taking their price target to EUR 120.00 (old: EUR 114.00). In view of the positive price reaction, the rating remains HOLD. The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

Kontron has announced a new major order for its smart charging systems for EVs with an order volume of EUR 120m. Kontron will develop and manufacture smart wall boxes for the European and Chinese markets. The new order marks the second major order since the acquisition of Katek and its subsidiary eSystems. Kontron's strategic focus on IoT solutions in areas like smart trains, solar systems, eMobility, aerospace, and smart factories is paying off. The back-to-back major orders for smart wall boxes secured in 2024, totaling over EUR 320m, indicate strong market demand and Kontron's ability to capitalize on it. mwb research’s analysts upgrade their estimates and reiterate their BUY rating with a new price target of EUR 35.00 (old: EUR 34.00). The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

Multitude's management has approved a new share repurchase program to acquire up to 80,000 shares. The program runs from July 3, 2024, to December 31, 2024, covering approximately 0.4% of issued shares, with a maximum purchase volume of EUR 560,000 – corresponding to EUR 7.00 per share. The extended timeline of the new program is expected to fully utilize the buyback volume. This move shows management's dedication to enhancing share value. Shareholders should see this as a positive step and a downside protection for the share price. mwb research’s analysts therefore confirm their BUY rating and their price target of EUR 13.20. The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE

SGT German Private Equity, soon to be German AI Group (GAI), released its FY23 results, highlighting its strategic shift towards AI. Revenues fell from EUR 13.2m to EUR 4.8m, missing the forecast by EUR 10m due to a failed PE transaction and virtually no new fundraising. The operating result (EBIT) continued to be negative due to one-off effects, including EUR 74.4m in goodwill amortization and EUR 5m in write-downs. With the strategic decision to discontinue the private equity business, GAI is now pursuing new promising avenues towards AI or a reverse listing. In doing so, GAI is leveraging the expertise of CEO Christoph Gerlinger, which mwb research’s analysts see as a promising strategic shift. The analysts now see all negative implications from the PE asset management excursion being digested in FY23, which is why mwb research believes that GAI offers significant upside potential based purely on its NAV base of EUR 1.77. As such, the analysts reiterate their BUY rating with a new PT of EUR 1.80 (previously: EUR 2.00), but note that a significantly higher value can be derived depending on the company's future path. The full update can be downloaded under https://www.research-hub.de/companies/SGT%20German%20Private%20Equity

Cancom has decided to cancel 1.7m treasury shares and reduce the share capital accordingly in order to strengthen capital efficiency and increase shareholder value. In addition, the company announced a further public share buyback offer for up to 3.5m shares at a price of EUR 33.00 per share, reflecting management's confidence in the intrinsic value of the company. These steps are intended to boost the value per share and signal confidence in the company's future viability and ability to generate sustainable earnings growth. mwb research’s analysts include both measures and reduce the number of shares accordingly. While all other estimates remain unchanged, Cancom's earnings per share improves. Hence, the price target is increased by 11.5%, reflecting the volume of shares bought back. mwb research’s analysts change their recommendation from HOLD to BUY with a higher price target of EUR 37.20. (old EUR 33.00). The full update can be downloaded under https://www.research-hub.de/companies/Cancom%20SE