Enapter presented its products this week at an Info Day in its factory in Pisa, Italy, and once again demonstrated the benefits of its new manufacturing strategy. The overall strategy is similar to the well-proven franchise system, as Enapter will only focus on the development and production of electrolyser cores and related software. All further production steps in the production process all the way to the complete electrolyser will be outsourced (joint venture with the Wolong Group in China). At the same time, the factory in Saerbeck will not be needed for the time being and will therefore be rented out (rental income approx. EUR 2m p.a.). The change in production strategy comes as no surprise in light of the announced partnerships, and makes economic sense, as it allows the company to focus on its core competencies in order to develop them further and to relocate labor-intensive activities to China. mwb research’s analysts therefore reiterate their BUY rating with an unchanged PT of EUR 15.00. The full update can be downloaded under https://www.research-hub.de/companies/Enapter%20AG

S&P yesterday raised Daimler Trucks' credit rating to A- from BBB+, underlining the company's strong performance in FY 2023. In Q1 2024, Daimler Truck not only further improved its profitability, but also continued to grow its revenues despite a challenging market situation in Europe and sharply declining unit sales and orders. Daimler Trucks still faces a number of changes with the economy cooling, an imminent CEO change and major shareholder Mercedes considering selling its 30% stake early next year. However, since mwb research downgraded to HOLD on 26 March, the share price has declined about 20% and now fully discounts these concerns. mwb research’s analysts upgrade their rating to BUY with an unchanged PT of EUR 44.00. The full update is available at https://www.research-hub.de/companies/Daimler%20Truck%20Holding%20AG

Stabilus has significantly lowered its guidance for the fiscal year 2023/24 and now expects revenues between EUR 1.3bn and EUR 1.35bn and an adjusted EBIT margin of 11.7% to 12.3%, which is below the original forecast. The adjustment follows weaker than-expected Q3 revenues and a subdued Q4 outlook, mainly due to lower demand in the automotive and commercial vehicle sectors. Continuing inflationary pressures and a challenging market environment have further exacerbated the situation. Although management had hoped for a recovery in the second half of the year, supported by contributions from recent acquisitions, but the expected recovery will not materialize. The global economic weakness and ongoing automotive industry issues have significantly impacted Stabilus, leading mwb research’s analysts to a revised price target of EUR 62.00 (old EUR 70.00). Despite this downgrade, the rating remains unchanged at BUY, taking into account today's weak share price (-15% versus close price yesterday). The full update can be downloaded under https://www.research-hub.de/companies/Stabilus%20SE

At the mwb research Travel & Leisure Conference, Senior IR Manager Adrian Bell and IR Manager Stefan Keese presented the TUI investment case, followed by a Q&A session. Questions focused on the opportunity for TUI following the insolvency of FTI, the third largest tour operator in the DACH region. This represents an opportunity for TUI to attract former FTI customers, particularly in key destinations such as Spain, Turkey, Greece and Egypt. Further discussion centered on a potential return to dividends, which could be resumed once TUI's credit rating is back to pre-pandemic levels. mwb research’s analysts maintain their BUY recommendation with a target price of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG

Koenig & Bauer announced exceptional order intake worth around EUR 250m from the drupa trade fair. This strong performance exceeded the company's own targets, especially in the sheetfed offset sector. The majority of orders came from China, Spain, Brazil, and other regions. Highlights included groundbreaking digital innovations like Kyana AI, sustainable solutions, high-quality printing capabilities, and comprehensive offerings combining various technologies. Koenig & Bauer confirmed its forecast of stable operating EBIT margin and sales for 2024, aiming for a 6-7% EBIT margin and EUR 1.5bn in group revenue by 2026 through its "Spotlight" program. Based on the compelling order situation, mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 18.00 but note that the continued good momentum could soon trigger upgrades in mwb research’s and consensus estimates. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG

Fielmann announced that it will acquire 100% of Shopko Optical, a Wisconsin-based optical retailer, from Monarch Alternative Capital for approximately USD 290m. The transaction is expected to close in the third quarter of 2024. Shopko Optical has more than 140 stores in 13 states and generated sales of USD 168m in 2023. Upon closing, Fielmann USA intends to integrate Shopko into its omni-channel platform, serving customers through digital channels and over 220 retail practices in 19 states. This acquisition marks another milestone in Fielmann's growth strategy in the US market, following the acquisition of online retailer Befitting and optical chain SVS Vision in 2023. It is in line with Fielmann's "Vision 2025" plan for international expansion, which aims to gain an important foothold in the US while reducing dependence on the German home market. Even if the acquisition looks a bit expensive, mwb research’s analysts welcome Fielmann's move to expand in this important market. BUY with an unchanged PT of EUR 62.00. The full update can be downloaded under https://www.research-hub.de/companies/Fielmann%20AG

The Covid pandemic significantly boosted Dermapharm through the production of the Covid-19 vaccine for Biontech. Despite the end of this surge, Dermapharm remains strong due to high demand for pharmaceuticals and dietary supplements. The company's growth is driven by steady income from established branded products, growth opportunities from medical cannabis following Germany's decriminalization, and international expansion into European markets. Continuous investment in R&D also strengthens its long-term competitiveness. Management projects improvement in 2024, with revenue guidance of EUR 1.17bn-EUR 1.21bn and adj. EBITDA of EUR 305mEUR 315m. According to mwb research, the outlook remains positive: The BUY rating is reiterated with a target price of EUR 41.50. The full update can be downloaded under research-hub.de/companies/Dermapharm%20Holding%20SE

Atoss Software has completed its announced conversion to an SE. Also, the capital increase from company funds related to the planned stock split was entered in the commercial register on June 7, 2024. The technical implementation of the share split has not been completed yet, and the company expects the share split to become effective at the earliest on June 24, 2024. mwb research’s PT remains unchanged until the split becomes effective. HOLD. The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20AG

mwb research initiates coverage of INDUS Holding AG with a BUY recommendation and a PT of EUR 40.00 offering an upside potential of c. 50%. INDUS is a leading specialist holding company in the German-speaking SME sector, pursuing a buy-develop-hold strategy. It acquires owner-managed companies primarily focused on succession planning in the industrial technology sector and supports their long-term development. With a portfolio spanning Engineering, Infrastructure and Materials, INDUS boasts a diversified and robust portfolio. It has a solid track record, experienced management and deep sector expertise. INDUS is unique in that it supports its portfolio companies to various growth and development initiatives to drive long-term growth. The company's attractive cash flow generation (FCF yield >15%) and dividend yield (~5%) add to the appeal of the INDUS equity story. The full update can be downloaded under https://www.research-hub.de/companies/INDUS%20Holding%20AG

The European Central Bank (ECB) cut interest rates by 0.25 percentage points for the first time in almost five years. This move could be a game changer for the real estate sector, which is suffering from high interest rates. The rate cut could lead to lower financing costs, which would be particularly beneficial for companies like FCR Immobilien AG. In a model calculation, a one percentage point reduction in interest rates could increase FCR's FFO by around 12% and further increase the value of the real estate portfolio. Overall, the turnaround in interest rates could have a positive impact on the real estate market in general and on the valuation of real estate companies in particular, thus making investments more attractive. mwb research’s analysts therefore reiterate their BUY rating with an unchanged price target of EUR 20.50, which represents an upside of around 100%. The previous full update can be downloaded under https://www.research-hub.de/companies/FCR%20Immobilien%20AG