Fraport reported moderate growth in passenger traffic in May, with a 7% yoy increase at Frankfurt Airport, although this was still 12% below 2019 levels in May and 15% yoy. Internationally, strong double-digit growth was recorded in Antalya, Greece, Lima and Ljubljana, while traffic in Brazil declined following the closure of Porto Alegre due to severe flooding. Despite the slower growth in Frankfurt, Fraport is on track to achieve the upper end of its FY24 passenger guidance range. With higher fees being prioritized over volume growth, mwb research’s analysts believe that the upper end of the EBITDA guidance range is also within reach after a good start to the year. mwb research’s analysts reiterate their BUY recommendation with unchanged estimates and an unchanged price target of EUR 67.00. The full update can be downloaded under https://www.research-hub.de/companies/Fraport%20AG

Multitude has successfully placed EUR 80m in new bonds at a 6.75% coupon, replacing higher-cost bonds and strengthening the corporate funds. Fitch's ‘B+’ rating with a Positive Outlook reflects confidence in a solid growth, which is supported by management’s long-term targets of EUR 30m in consolidated net profits. This move, together with the strong Q1 2024 results and the strategic realignment, underlines Multitude's commitment to financial stability and shareholder value. The ongoing share buyback and the confirmed 50% EBIT growth target for this year reinforce the positive outlook. Multitude remains a BUY with a target price of EUR 13.20. The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE

MHP Hotel AG has announced that the Koenigshof Munich, a Luxury Collection Hotel, will open tomorrow, 14 June, in time for UEFA Euro 2024. This will be the first German hotel in Marriott's Luxury Collection, demonstrating Marriott's confidence in MHP as a franchisee. The 106-room Koenigshof is expected to achieve very high ADRs, consolidating MHP's position as the price leader in Germany and providing confidence that the company can achieve its recently issued FY24 guidance of revenues of around EUR 160m and adjusted EBITDA of around EUR 6.0m. mwb research’s analysts reiterate their BUY recommendation with a target price of EUR 3.00. mwb research hosted an earnings call and a presentation by MHP at our Travel & Leisure conference this week, recordings of both events are available at https://research-hub.de/events. The full update can be downloaded under https://research-hub.de/companies/MHP%20Hotel%20AG

On June 12, 2024, Siltronic inaugurated its new 300mm Fab in Singapore, following its commissioning at the beginning of the year. With a EUR 2bn investment, FabNext is set to meet growing semiconductor demand driven by AI, digitalization, electromobility, and more, ramping up to 100,000 wafers per month by the end of FY24. Leveraging automation, digitalization, and its strategic location, the 300mm fab is anticipated to have above 50% EBITDA margin. Thus, mwb research’s analysts reaffirm the company's short and mid-term guidance and confirm their BUY recommendation with a price target of EUR 94.00, indicating a 22.5% upside potential. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG

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