CompuGroup Medical (CGM) has expanded its Northern European presence by acquiring the Norwegian software company Pridok AS, a specialist in healthcare solutions. Founded in 2013, Pridok has become a key player in Scandinavia's digitized healthcare sector, with a 20% market share in primary care. Despite its small size with 2023 revenues of EUR 4.1m and a growth of 32%, the acquisition price of EUR 35.7m (potentially rising to 12.7 times sales with additional earn-out costs of EUR 16.7m) is notably high. The deal aims to utilize Pridok’s web-based patient journal system to bolster CGM’s offerings and potentially expand into new markets. However, the high cost and Norway’s mature digital market pose challenges for the anticipated value from this acquisition. The very expensive micro-acquisition will completely evaporate in CGM's P&L, which is why mwb research’s analysts only marginally adjust their estimates. Remains a BUY with an unchanged price target. The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

Carl Zeiss Meditec (CZM) recently lowered its FY 23/24 outlook due to weak demand and cautious customer investments, leading to a significant share price decline. However, CZM's leading market positions, brand strength, and robust R&D pipeline present a strong investment case. The global healthcare demand is expected to grow, potentially boosting CZM's sales and profitability. The company's financial resilience and increasing recurring revenue support its ability to recover from short-term disruptions. With cost reduction measures and a forecasted return to growth in FY 24/25, CZM's long-term prospects remain solid. mwb research’s analysts confirm their price target of EUR 80.00 and upgraded their rating from HOLD to BUY, highlighting the current low share price as an attractive entry point for investors. The full update can be downloaded under https://www.research-hub.de/companies/Carl%20Zeiss%20Meditec%20AG

In a call with the management of HWK 1365 SE (HWK), mwb research’s analysts have updated key planning assumptions. In particular, the tax rate is expected to be lower than previously assumed by the analysts. After adjusting the model, the experts arrive at a new price target of EUR 86.50 (old: EUR 80.00) and continue to recommend BUY. As a reminder: HWK is the global market leader for large calender rolls, a high-tech product that is essential for the production of high-quality paper and cardboard. With a market share of 80% in this niche, the company supplies leading paper machine manufacturers and benefits from growth drivers such as the increasing use of coated board and folding cartons as well as the expansion of the service business and diversification into the food industry. The full update can be downloaded under https://www.research-hub.de/companies/HWK%201365%20SE

Atoss Software just completed a stock split, giving shareholders one extra share for each one they held. This doubles the total number of shares outstanding but doesn't affect the company's overall value. The goal is to increase stock liquidity. In May, Atoss also changed its legal form to an SE, which better suits global businesses. mwb research’s analysts adjusted their price target to EUR 114.50 (before split: EUR 229.00) to reflect the stock split, while their rating remains HOLD. The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20SE

The Friedrich Vorwerk Group (FVG) announced a follow-up contract for the SEL gas pipeline project (SEL - Süddeutsche Erdgasleitung). This order is in line with the initiative to further expand the gas pipeline infrastructure in Germany and to become independent of coal, but also to expand the gas pipelines directly for future hydrogen transports. This will further fill FVG's order backlog (Q1/24 order backlog EUR 1.05bn) and strengthen the recently declining Natural Gas segment (sales: FY23 -10.5%, Q1/24 -21%). As the Natural Gas segment has particularly strong margins (EBIT margin: FY22 13.1%) and a sales share of around 40%, this should further improve overall margins. As a result, mwb research’s analysts expect EBIT margins to improve from 3.7% in FY23 to over 6% in FY24 and over 10% in FY25. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 22.00 based on the margin recovery, strong order book and solid growth prospects. The complete analysis is available at https://www.researchhub.de/companies/Friedrich%20Vorwerk%20Group%20SE

Geratherm's annual report for FY23 shows a 19% drop in sales, primarily due to significant declines in Healthcare Diagnostics (-29% yoy) and Respiratory (-10% yoy), while Incubator Systems and Cardio/Stroke remained stable. Despite lower sales, gross profit remained stable due to lower energy costs and effective cost management, resulting in a slight increase in EBIT. Geratherm expects lower sales and negative EBIT in 2024, mainly due to the continued difficult market conditions for clinical thermometers, which already resulted in short-time working at the Geratal plant from 1 April 2024 to 31 October 2024. mwb research’s analysts adjust their estimates accordingly and arrive at a new price target of EUR 8.00 (old: EUR 9.15), while maintaining their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Geratherm%20Medical%20AG

VARTA has issued a profit warning, revising its FY24 revenue guidance to EUR 820-870m, down from at least EUR 900m, due to a significant market decline in energy storage systems and delays in the VARTA.wall high-voltage storage system launch. The company is also losing market share domestically. VARTA is re-evaluating its restructuring program, initially planned for completion by 2026, as previous assumptions no longer fit the current economic situation. Ongoing competitive pressure, internal issues, and high debt burden are exacerbating challenges. Due to these factors, mwb research’s analysts are further lowering their estimates. The capital market awaits an updated strategy and restructuring roadmap. However, VARTA's FY23 results are delayed until August. mwb research’s analysts maintain their 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

LM Pay S.A reported a 16% increase in net income from sales to PLN 17.5m in 2023, compared to the previous year. However, operating profit (EBIT) fell to PLN 0.2m from PLN 3.7m in 2022, which is attributed to higher operating expenses due to one-off costs for new product implementation and the listing on the Düsseldorf Stock Exchange. On the other hand, the stabilized macroeconomic environment helped reduce credit risk and related costs. Looking ahead, the management anticipates dynamic sales growth in 2024 through product development and network expansion, aiming to enhance profitability and deliver value to shareholders. With its ongoing strategic developments, LM Pay is well-positioned to deliver enhanced value to its shareholders and customers by leveraging its achievements and aligning with long-term objectives. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 66.00. The full update can be downloaded under https://www.research-hub.de/companies/LM%20Pay%20S.A.

Staige One AG's FY23 revenues were below expectations at EUR 2.6m compared to the estimated EUR 3.2m and FY22 revenues of EUR 4.3m. Despite operational improvements and an increase in customer revenues to EUR 2m, EBITDA was EUR - 5.3m, impacted by one-off IPO costs and sales initiatives. Staige expanded its market with 1,400 camera systems installed and significant engagement on its video platform. Looking ahead, Staige expects significant revenue growth to EUR 4.0-4.4m and improved EBITDA in FY24, driven by new contracts and market penetration. Management remains optimistic and forecasts revenues of EUR 6.0-10.0m by 2025- 2026. Hence, mwb research’s analysts maintain their BUY rating but adjust their PT from EUR 6.50 to EUR 6.00. In the view of the experts, it is worth noting that a large chunk of the 2024-2026 revenues are already secured by recent customer wins, hence significantly de-risking an investment in Staige. The full update can be found under https://www.research-hub.de/companies/Staige%20One%20AG

mwb research’s analysts initiate coverage of HMS Bergbau AG (HMS) with a BUY recommendation and a PT of EUR 36.00 offering an upside potential of 41.7%. HMS Bergbau AG has strong roots in the coal trade and is well positioned in the markets of Africa and Southeast Asia. While coal is perceived as becoming less and less important in Europe, demand is still expected to grow for many years in Emerging Markets, where HMS Bergbau is continuously expanding its market position. Slowly but surely, HMS is also trying to safeguard its more distant future by expanding on other commodities, such as critical raw materials. These are likely to see a boom in demand in future applications around cleantech and electrification. The full update can be downloaded under https://www.research-hub.de/companies/HMS%20Bergbau%20AG